Navigating Trade Unions and Works Committees: Can Workers Join Multiple Unions and More?

I have some doubts relating to trade unions and works committees. You are requested to help me with understanding them.

1) Can a worker join more than one union in the same establishment?

2) Can contract laborers cast votes in works committee elections?

3) Can contract laborers file nominations in the election of works committee members?

4) Who is ultimately liable to pay bonuses to contract laborers?

Dear Rahul, I believe that most of these four questions arise from a lack of clarity in understanding the differences between the actual meanings of the terms "workman" and "contract labor." To simplify understanding, I would like to avoid the statutory definitions of these terms, particularly as they appear in the Industrial Disputes Act, 1947, and the Contract Labor (R&A) Act, 1970, respectively.

Understanding Workman and Contract Labor

A workman refers to an individual directly hired, controlled, and paid by the employer to establish a contract of service between them. On the other hand, contract labor refers to individuals engaged by the Principal Employer through a Contractor with whom the PE has a service contract. Legally, there is no contractual relationship between the PE and the contract labor, even though the contract labor works for the PE. Thus, the answer to your 2nd and 3rd queries regarding the works committee is "No."

Trade Union Membership

Regarding the first question, to my knowledge, there is no explicit statutory prohibition on simultaneous dual or multiple membership of trade unions. In cases of disputes between unions regarding the membership of such individuals, they would be considered non-members of any union. Therefore, no worker in the establishment can hold membership in more than one union simultaneously.

Liability for Payment of Bonuses

Regarding the liability for payment of bonuses to contract labor, opinions in the higher judiciary are divided. However, the contractor's charges quoted, approved, and paid should include the statutory bonus payable to the contract labor. Thus, the PE must ensure that the contractor pays the bonus to the contract labor.

Thank you.

At the end of the month, all contractors are given wages plus a specific percentage of service charge by the PE for arranging the required number of CL's. Almost none of the PEs give a bonus amount to contractors to distribute among their employees; therefore, contractors never give bonuses. In such a situation, whose responsibility is it to disburse the bonus?

Is the amount of the bonus to be borne by the PE or the contractor? Please clarify.

Payment of Bonus and Principal Employer Liability

Payment of bonus depends on the allocable/available surplus of the employer as per the Payment of Bonus Act, 1965. The Act makes no mention of the statutory liability on the Principal Employer, unlike the PF, ESI, EC, MW Act, etc. In framing the Act, the legislature has not consciously added it to be the responsibility of the principal employer.

Even otherwise, if it is made the liability of the Principal Employer, then depending on the deployment with the respective employers, different laborers of the same contractor will receive widely varying amounts of bonus—an anomalous situation. There is a clear-cut judgment of the Kerala High Court in the Comminco Binani matter stating that the bonus is not the liability of the Principal Employer.