Axiomatic Truth











A HAND BOOK FOR H.R. MANAGERS ARTICLE ON

AXIOMATIC TRUTH – DISCIPLINE IN THE ORGANISATION By

P.B.S. KUMAR B.Sc,MA(PM),MA(Ind.Eco.).MBA(HR),BGL,DLL,PGDPM












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AXIOMATIC TRUTH –DISCIPLINE IN THE ORGANISATION 1. INTRODUCTION: Discipline is the force that prompts an individual or a group to observe the rules, regulations and procedures which are deemed to be necessary for the attainment of an objective, it is force or fear of force which restrains an individual or a group from doing things which are deemed to be destructive of objective. It is also the exercise of restraint or the enforcement of penalties of the violation of group regulations. It is like an axiomatic truth that no organization can flourish without proper and conducive atmosphere of discipline. Discipline is defined in dictionary meaning as “as mode of life in accordance with rules”. The concept of industrial discipline arises from this definition while the purpose is to ensure that order and place are preserved in an organization by enforcing a mode of life in accordance with the laid down rules. The aims and objects of discipline are :  To obtain a willing acceptance of the rules, regulations and procedures of an organization so that organizational goals may be achieved.  To import any element of certainty despite several differences in informal behavioural patterns and other related changes in an organization.  To develop the spirit of tolerance among employees and a desire to make adjustments.  To give an seek direction and responsibility.  To create an atmosphere of respect for the human personality and relations, and  To increase the working efficiency and morale of the employees so that their productivity is stepped up, the cost of production brought down, and the quality of production improved. Discipline in general speaking in three ways. ⌦ The first one is known as self-discipline:It refers to one’s efforts at self-control for the purposes of adjusting oneself to certain needs and demands. This form of discipline is bases on psychological principles. First, punishment seldom produces the desired results, often it produces undesirable results. Second, a self-respecting person tends to be a better that one who is not.

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⌦ The Second one is Principle is the necessary condition of orderly behaviour:This refers to discipline as the condition which must exist for any orderly behaviour in an organization through efforts that build up morale and high spirits. ⌦ The Third principle considers discipline as a judicious process:Based on training and punishment. Its purpose is not a change past behaviour but to prevent its recurrence in future. It is a process of training a worker so that he can develop self-control and can become more effective in his work. Discipline, in part, is an attitude of mind, product of culture and particular environment which impels an individual to willingly co-operate in the observance of the rules of the organization to which he belongs. This conformity and willingness to work for the objective of his organization have to come from within, through at times they may have to imposed by an external agency. To get the things in the organization in a successful attainment of goals, it may be punitive or a big stick approach which imposes a penalty or punishment, if the rules and regulation, which have been laid down by an organization, are ignored or disobeyed. 2. CAUSE OF INDESCIPLINE: Before coming to the important aspect of the ways to ensure the maintenance of discipline, it is necessary to know the causes of indiscipline. Some of the causes that have been enumerated are: A) Job Satisfaction : Non-placement of right person on his qualification, experience and training.

the

right

job

which

is

suitable

for

B) Lack of proper Training : Undesirable behaviour of senior officials, who may have set a pattern of behaviour which they expect their subordinates to follow, but their expectations are belied, and an infringement of rules follows. C) Lack of proper Communication Skills: Lack of upward communication, as result of which the thoughts, feelings and reactions of employees cannot be conveyed to the top management. This generally leads to aggressive or rebellious behaviour.

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D) Lack of Leadership Qualities : Leadership which is weak, flexible, incompetent distrustful of subordinates is often an instrument which makes for the creation of indiscipline among employees. E) Lack of proper supervision: Lack of properly drawn rules and regulations and also absence of good supervisors. F) Psychological and Sociological reasons : The divide and rule policy of the management, as a result of which friction and misunderstanding are created among the employees which destroy their team spirit. Also misunderstanding rivalry and distrust among workers and supervisors which leads to fellow feeling , a widespread sense, of injustice, or apathy on the part of management. G) Lack of proper Working Environment : Bad working conditions, inborn tendencies to flout rules, discrimination in the matters of selection, promotion, transfer and placement and improper coordination, delegation of authority and fixing of responsibility. The success of any rules of discipline depends on the existence of a high degree of cooperation between the employers and employees, on faith an belief in on another’s motives. Disciplinary measures have serious repercussions on employee, they should, therefore, be based on certain principles so that they may be fair, just and acceptable to employees and their representatives. As far as possible, all the rules should be framed in cooperation and collaboration with the representatives of employees. The rules should be appraised at frequent and regular intervals to ensure that they are and continue to be appropriate, sensible and useful. The rules should vary with changes in the working conditions of employees. They should be uniformly enforced if they are to effective. They must be applied without exception and without bending them or ignoring them in favour of any worker. Before taking any disciplinary action, it should be made sure to get and keep adequate records of misconducts and warnings. It is always better to let the subordinate fully explain what happened and why it happened. It may then be discovered whether there were mitigating circumstances or that he was not aware of the rules, or that the person had conflicting orders or even permission to break the rule for some reasons. Getting facts is a good management practice, especially when defending the decision to superiors, arbitrators and others. Although there is no hard and fast procedure to be followed to maintain the discipline but in each case and situation it has to be judicious and should be based on the principles of natural justice.

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3. GUIDE LINES FOR INITIATION OF DISCIPLINARY ACTION:

I. CHARGE-SHEET The object of the Charge - Sheet is to tell the delinquent what he is supposed or alleged misconduct during his employment. Under the Industrial law, there is no form prescribed for a Charge-Sheet hence it becomes more important to draft it more carefully with precision and clarify. The framing of a Charge-Sheet being the first necessity for disciplinary action and it is the main pillar for record purpose. The Charge-Sheet should also take care to mention the particulars of time, place, occurrence and the manner in which the incident alleged to have taken places so as to remove vagueness and make the charge definite by mentioning these essential factors.(Just like a provisions in the vegetable soup) : ESSENTIAL INGREDIENTS :

   

A Charge Sheet being root of the disciplinary action. When vague, will vitiate the whole proceeding hence the penalty imposed on delinquent will be quashed. The object of a charge sheet is that the delinquent must know what he is charged with and have the adequate opportunity to mete the charges and to defend himself by giving a proper explanation. A delinquent employee must be provided with the copies of the documents as relied upon by the Disciplinary Authority and the burden, to show that nonsupply of documents required by the delinquent did not cause any prejudice to him, lies upon the Disciplinary Authority. Failure to enclose the list of witnesses along with the charge memo will violate the Conduct Regulations, hence the entire disciplinary proceedings will be vitiated when it is so stipulated.

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 GUIDENCES:  The Charge-Sheet must be specific and must set out all the necessary particulars. It will serve no useful purpose at all to presume that the employee is fully informed of the charges because of any previous proceeding against him.  Any warnings that might have been given to a workman previously or from time to time or that his attention had been drawn to any fault, lapses on his part previously can, by no means, take the places of a regular enquiry.  Vague accusation, which the workman could not possibly follow, should not be made in the charge sheet.  The Charge Sheet must accurately and precisely state whether the act of commission or omission constituting misconduct is in violation of any Standing Order or not. The test is whether the charge conveys to the employee concerned, the exact nature of misconduct in a way that would enable him to mete the charge.  Where, for instance, the charge is for unauthorized collection of subscription on the work premises, the purpose for which such a subscription was collected need not be stated. But the time, date and place i.e. when and where the collection was made must be clearly mentioned.  When, under the Standing Orders or service rules, and act such as absence without leave, late attendance, negligence or disobedience is misconduct, when it is committed habitually then in such a case the word, habitual forms and essential constituent of the charge and must be expressly mentioned in the charge sheet.  If the charge is for arrogant conduct towards a superior, then it must be so stated in the charge sheet given in the occasion on which the misconduct was committed and in respect of which particulars.  When an employee is charged for habitually disobeying the instructions, then each set of disobedience on his part must be separately mentioned in details in the charge sheet.  When an employee is charged for using objectionable and offending language, then the actual words used must be stated in the charge sheet.

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 While verbiage is to be avoided, use of any abbreviations such as etc., must be equally shunned. Phrases such as any other document is vague and ineffective and so, only reference should be made to a specific thing or a particular person.  It is important to remember that the language of a charge sheet while being precise, must be give the impression that the employer has taken the question of the employee’s guilt as a foregone conclusion.  The delinquent employee be furnished with the documents and reports as referred to in the charge sheet otherwise his termination will be quashed.  As far as practicable the language of a charge sheet must be simple and be one that is commonly understood or in common usage.  When the previous record of the employee is relied upon, then sufficient particulars of the previous bad record should be specified in the charge sheet.  Another thing is , pm which caution is necessary, is to make use of the term about in relation to the date and time of a particular incident of misconduct.  A valid charge sheet must be in precise terms as there is no room for using loose or vague term which fails to convey, in the correct sense, a charge brought against an employee.  It is the duty of the employer to indicate to a delinquent employee served with the charge sheet not only the precise nature of charges, but also the documents, if any, upon which the charges are based.  The charge sheet must be signed by the competent authority.  A Charge sheet, issued after long delay of the misconduct, will vitiate the enquiry.  Another important, on request of the delinquent the employer may serve the charge sheet in his mother tongue (along with English version).  One of the fundamental rules of natural justice is that the person affected should have full and true disclosure of the facts sought to be used against him. He must know the nature of the misconduct alleged against him and must be acquainted with it in the first instance, it means that the charge sheet is the sine qua non of the domestic enquiry. The heart of the matter is that no disciplinary action can be initiated against the employee or a workman unless he is first served with a charge sheet containing all charges and their essential particulars. So while drafting a charge shet the attempt should be to ensure that the charge mentioned in the charge sheet is specific as well as complete in all essential constituents.

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 Principles of natural justice require that the person charged should know precisely the nature of the offence so that he may be able to explain what he has to say about it an prove innocence in the matter. Vague allegations should be avoided while drafting a charge sheet.

MODEL PRO-FORM FOR GENERAL CHARGE-SHEET To Mr./ Ms…………………….. Emp.No……………………. Designation……………….. It is reported against you that on ________(date) at ________(time) you_____ (mention clearly the act or acts of misconduct alleged). The acts, as alleged above to have been committed by you, amount to misconduct which, if proved, would warrant serious disciplinary action against you. Accordingly, you are hereby required to show cause within _______ days of the receipt hereof as to why you should not be dismissed or other wise punished. Should you fail to submit your explanation as required, It will be presumed that you admit the charges and have no explanation to offer and the matter will be disposed of without any further reference to you. Since the charges, leveled against you, are of grave and serious nature, you are herby suspended pending further proceedings and final orders in the matter. The receipt of this letter should be acknowledged.

AHTOHRISED SIGNATORY

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PRO-FORMA FOR NOTICE FOR SUSPENSION ORDER PENDING ENQUIRY:

To Mr./ Ms…………………….. Emp.No……………………. Designation……………….. Whereas the charges amounting to gross misconduct (s) and indiscipline againt you have been leveled in accordance with Company Service Rules / Standing Order No……as per charge-sheet dated………..sent to you. Now, therefore, you are hereby placed under suspension with effect from………under clauses………..of the Factory / Company Rules / Standing Orders. Your suspension has been considered necessary in order to maintain proper discipline in the Factory / Company / Establishment and to conduct proper enquiry against you. You will be entitled to receive subsistence / suspension allowance of Rs……. During the period of suspension.

AHTOHRISED SIGNATORY

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II. DOMESTIC ENQUIRY The domestic enquiry in a private employment is that of mistrust which arises essentially because the Charge-Sheet is given by the employer and the enquiry is also held by an officer or an outsider appointed by the employer. As such the employer is represented both, the prosecutor and the Judge. A suspicion of bias is inevitable in such a situation. This is the main reason that the delinquent employees do not have faith in the enquiry officer. They participate reluctantly and take every possible step to frustrate the enquiries. They raise number of objections right from the validity of the appointment of enquiry officer. They also demand to be represented either by a lawyer or the union leaders. They ask for a number of documents whether relevant or not. Also, the delinquent employees or their representatives do not restrict the cross-examination of the witnesses and the enquiry officer has to take a decision under the given circumstances. Even when the enquiries are held by top bureaucrats or the judicial officer, one flaw or the other can be found which vitiates the whole enquiry. An attempt is made to clarify various aspect which should be taken care while holding an enquiry. GUIDELINES FOR HOLDING AN ENQUIRY:

 A domestic enquiry is held by an Enquiry Officer who is not a Judge but at the same time the Principles of Natural Justice have to be complied with so that proper opportunity is given to the charge-sheeted employee Ex.: to be heard, to cross- examine the witnesses, to produce his document, with witnesses and himself.

 The enquiry officer should neither be the Disciplinary Authority nor in any way connected or witness to the misconduct(s).

 An advocate can also be appointed as an Enquiry Officer.  When an Enquiry officer is appointed from the establishment, he should preferably be superior in status of the charge-sheeted employee.

 The notice for holding of enquiry with time, date and venue of enquiry be sent by the Enquiry Officer to the charge-sheeted employee and to the Management by Registered A.D. Post . A personal delivery of the notice through a messenger can be appropriate when the charge-sheeted employee has not been placed under suspension.

 While fixing the hearing o enquiry, the charge-sheeted employee be given reasonable time for appearance so that he could prepare his defence.

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 First of all, the attendance of the parties including the Enquiry Officer, chargesheeted employee and the management representative are to be recorded and duly signed by them to this effect in the proceedings or the order sheet, if made separately.

 The whole procedure be carried out in good faith and without any bias or intent of malice.



For the sake of brevity, the abbreviations are used as EO (Enquiry Officer) , CE (Charge-Sheeted employee), MR (Management Representative),CER ( ChargeSheeted employee’s Representative) and MW (Management Witnesses) 1,2 and so on. CEW (charge-Sheeted employee’s Witnesses) 1,2 and so on. The documents which are produced are to be exhibited as Exh.No. 1,2 and ……..Management documents also be exhibited like that.

 The Enquiry Officer should refrain from asking leading or probing questions to the charge-sheeted employee.

 The Management Representative be asked by the Enquiry Officer to produce the list of witness along with documents which should be duly exhibited (by exhibition of the documents it mean it is construed that they from part of the proceedings in the enquiry).

 The enquiry proceedings be recorded in triplicate Ex.: one copy for the Enquiry Officer, one for charge-sheeted employee and the third copy to the Management Representative.

 The Representation in the enquiry by a lawyer is not permitted unless the Service Rules or the Standing Orders or Regulations of the Establishment so provide whereas the Charge Sheeted Employee can be advised to be represented by any of his co-employees.

 If the management representative as a legally trained person, the charge-sheeted employee can have representation through a lawyer of his choice.



The charge-sheeted employee and / or his representative be given an opportunity to cross examine the witnesses and the evidence should be recorded as produced by the Enquiry Officer. Thereafter, the charge-sheeted employee be asked to produce his witnesses and himself, The Management representative be given an opportunity to cross examine the witnesses of the Management

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 Every page of the proceedings be signed by EO, CE and MR. If there is any objection either by the CE or MR, it should be dealt by asking the comments of the other party.

 The next date and time for recording of evidence be duly recorded in the enquiry proceedings or the order sheet. If made separately, and signatures of both Ex: CE and MR be obtained at the enquiry proceedings.

 The adjournment, when sought by the CE or CER, be given by the EO even if the requests to this effect are opposed by the MR.

 The Management Representative should be asked to cross-examine the witness(es) and if he cross examinees the witness(es), it should be recorded. If the Management Representative does not want to cross examine the witness(es), the Enquiry Officer should record this in the following manner.

 After the enquiry proceedings are concluded, the Enquiry Officer should give his findings of the facts, evidence oral as well as documentary, by dealing with the salient features of the evidence on the record. The Enquiry Officer should give finding as to whether the charge has been proved or not or partly proved, as the case may be.

 The Enquiry Officer should not recommend any punishment to be imposed upon the charge sheeted employee by the Disciplinary Authority.

 The charge sheeted employee be allowed to cross examine the Management witnesses and call his own witnesses.

 The charge-sheeted employee be given ample interpretation facilities if the language of enquiry is not his own.

The following is the model enquiry proceedings

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III. PROCEEDINGS OF AN ENQUIRY Recording of enquiry proceedings (in triplicate) one for enquiry officer, one for management’s representative and one for the worker concerned. Enquiry proceeding into the charge sheet No.________dated______ issued to Shri______________( name & designation) Ticket No._______________

Time______________ Date_______________ Place of enquiry________ Present: (1) Concerned Worker Shri_______ (2) Worker’s representative, Shri_____ (3) Management’s representativeShri_______ The contents of the Charge sheet No.________dated________were read over and explained to the worker. Since the concerned worker does not admit the charge(s) let the proceeding of the enquiry be recorded. OR As the concerned worker admits the charge(s) leveled against him, it is not necessary to proceed further with the enquiry, but to record his statement. Procedure for Recording Evidence Since the management has to prove the charges the evidence of the management should be recorded first. The management’s representative should narrate in detail circumstances I detail leading to the charge-sheet and it should be supported by the documents/record produced in the enquiry. If the pre-recorded statements are to be used in the evidence, the concerned worker must be given an opportunity to crossexamine the person whose statement has been so recorded. Such a person can be examined as a witness de novo.

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Examination of the witness in support of the charge(s) Management’s witness No. (M.W.1) Statement of Shri___________________(name & designation) Ticket No.________________________ (Record of statement) Date___________________ _______________________ (Signature of the witness) Read over, explained and admitted, that the above statement has been correctly recorded in my presence. ________________________ (Signature of the concerned worker) Date__________ (Signature of worker’s representative) Date___________ _______________________________ (Signature of the enquiry officer) (After recording the statement of the witness, he concerned worker be asked by the enquiry officer whether he desires to cross-examine the witness, and if so desired, he should proceed further with the cross-examination.) Qs.(By the concerned worker or hi representative) As. (By Shri____________witness) (If the concerned worker refuses to cross-examine or does not wish to cross-examine the witness then the statement to this effect should be recorded as under): “Opportunity given to the concerned worker as well as his representative to cross-examine the witness but he refuses to ask any question (s) to the witness/he does not wish to cross-examine the witness.” Read over, explained and admitted, that whatever is recorded above, ahs been recorded in my presence. ____________________________ (Signature of the concerned worker) Date

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___________________ (Signature of MR) ________________________________________ (Signature of the enquiry officer with date & stamp) If some clarification are to be sought from the witness in support the charges MR may put specific clarifications, and these clarifications must be recorded in the enquiry procedure. Re-examination should be permitted only if there is any ambiguity. Some procedure is to be adopted for recording the other witness. When witness of the management are examined, the enquiry officer should record the statement of the management representative to the effect that the management has no other witness to prove, hence he closes the evidence. ___________________________ (Signature of MR) Date__________________ When the examination of the witness of the management in support of the charge(s) is over, the EO should record the statement of the MR to the effect that the management has no other witness to produce, hence he closes his evidence. _____________________________ (Signature of the concerned worker) Date______________ When the examination of witness of the Management in support of the charge(s) is over, the concerned worker be asked to make a statement or proceed with his evidence. _____________________________ (Signature of the concerned worker) Date_________________ __________________________________ (Signature of worker’s representative) Date_________________

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_____________________________ (Signature of the MR) Date__________________ ________________________________ (Signature of the concerned worker) After the statement of the concerned worker is recorded, the enquiry officer should ask the management’s representative whether he would like to cross-examine the worker or his witness (es). Qs.______________ As.______________ So on and so forth Date_____________

________________________ (Signature of concerned worker) ________________________________ (Signature of worker’s representative) _________________________ (Signature of MR)

Date_______________ If the management’s representative has no questions to ask from he concerned worker, a statement to this effect should b recorded in this manner: “Opportunity given to the management’s representative to cross-examine the concerned worker, but he had no questions to ask from the concerned worker.” Thereafter the concerned worker should be asked to produce his witness(es). Worker’sWitness (W.W.1) Statement of Shri___________________(name, designation and address) Ticket No.__________etc (if any) (Record the statement)

________________________ (Signature of the witness)

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Read over, explained and admitted that the statement of W.W.1 has been recorded in my presence. ______________________ (Signature of worker) Date__________ _________________ (Signature of the EO) Date__________

The MR should be asked to cross-examine the witness (es) and if he cross-examines the witness (es), it should be recorded. If the MR does not want to cross-examine the witness (es), the EO should record this in the following manner: “The MR does not want to cross-examine the witness(es), of the worker despite an opportunity given to him to this effect.” _______________________________ (Signature of the MR) Date___________ _______________________________ (Signature of the concerned officer) Date___________ ______________________________ (Signature of worker’s representative) Date___________ In a domestic enquiry, no arguments are required t be advanced by either of the parties after producing evidence for or against. The EO, should thereafter submit his written finding to the management. Finding/Report of the EO In the matter of charge sheet No._______dated______issued by M/S___________hereinafter referred to as ‘Management’ to Shri______________(hereinafter referred to his concerned worker)

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PRESENT ____________________________ (Name & designation of the EO) APPEARANCES 1. Shri________________(MR) 2. Shri________________(concerned worker) 3. Shri________________(representative of the concerned worker)

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REPORT This report is the subject matter of the enquiry instituted by M/S_____________hereinafter called the ‘Management’ against Shri____________hereinafter called the ‘Concerned worker’ and arises out of the charge(s) framed against him in the charge-sheet No._________dated_________whereby the Management has leveled the charges which, in brief are as under: (Briefly narrate the charges) since the concerned worker has denied the charges, the MR who was directed to produce the evidence in support of the charge(s) has produced the following documents: (Herein give the detail and description of the documents.) 1.________________ 2.________________ 3.________________ the management has further produced oral evidence by producing_______witness, who have stated__________(number) (herein narrate in seriatum the important points of evidence of the Management) the concerned worker has produced the following documents: 1.__________ 2(herein give the detail and description of the documents) 3.___________ the worker concerned has produced oral evidence by producing__________witness who have stated___________(number) (herein narrate in seriatim the important points of evidence of the witnesses of the concerned worker) Finding (Report of the enquiry) Guidelines for preparing the findings/report by the EO 1. 2. 3. 4. 5. 6. 7.

It should be self-contained The facts be stated briefly and embody the reasons for the conclusions arrived at The conclusion should be based on the evidence led by the parties There should be no perversity There should not any bias or partiality The EO should not recommend the punishment even when the charges as leveled are proved against the delinquent employee. The report of the enquiry officer must be a speaking order in the sense the conclusion is to be supported by reasons.

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4. MODEL FORMS PRO-FORMA FOR A LETTER TO THE ENQUIRY OFFICER FOR CONDUSCTING ENQUIRY AND CONVEYING HIS ACCEPTANCE

To Mr. / Ms………………………….. …………………………………… Sir / Madam, The Management has issued a charge-sheet to one of the employees calling for his explanation thereto. The explanation, has been found to be as unsatisfactory. The Management has decided to hold an enquiry by giving an opportunity to the delinquent employee to defend himself. The Management has decided to appoint you as an Enquiry Officer and we need your formal approval which may kindly be conveyed at your earliest. Please be assured that the Management will extend full co-operation in this context and Mr. / Ms……………. Has been appointed as its representative. Thanking you, Yours Sincerely, For & on behalf of the Management Authorised Signatory CC: Mr./ Ms.---------------------------, you are appointed as Management’s Representative to co-ordinate with the Enquiry Officer. Note: After the disciplinary authority decides to order an enquiry, it may hold the same itself or appoint an Enquiry Officer for that purpose in the absence of a provision to the contrary in the in the service or discipline rules concerned. The Enquiry Officer functions only as a delegate of the disciplinary authority, whose conclusions and recommendations may or may not find favour with the disciplinary authority. The prerequisites of a person to be Enquiry Officer may thus be summarized as under.: (a) The appointment of the Enquiry Officer should be made by an authority competent to take disciplinary action against the workman concerned. (b) Before making the appointment of a person to act as Enquiry Officer, it must be seen that he is a person with open mind, a mind which is not biased against the workman concerned. (c) A person to be Enquiry Officer must be a Responsible Officer or High Status commanding respect from the workman. He should not be a person of lower status and should not be judge in his own cause.

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PRO-FORMA FOR A NOTICE TO THE CHARGE-SHEETED EMPLOYEE FOR HOLDING ENQUIRY:

To Mr./ Ms…………………. Emp.No………………… Designation…………….. Ref: Your explanation dated ………………..in response to the charge-sheet dated……………… We are in receipt of your explanation dated…….in response to the charge-sheet dated……..After careful consideration of your explanation, which has been found unsatisfactory, it is considered desirable and necessary to conduct an enquiry into the charges leveled against you. You are hereby informed that the enquiry will be conducted by Sri……………….who has been entrusted with assignment to hold the enquiry. You are, therefore, directed to attend and participate in the enquiry proceedings with all the necessary document, evidence and witness (es) that you may seek to rely upon in your defense. You are further intimated that if you fall to attend the enquiry proceedings without sufficient cause, the enquiry will be proceeded ex-parte without notice to you.

For & on behalf of the Management Authorised Signatory

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DRAFT OF NOTICE AFTER RECIEPT OF ENQUIRY REPORT To ---------------------------------------------------------------This has reference to the charge sheet dated __________ issued to you and the enquiry held thereafter. We have since received the report of the enquiry officer, wherein the charges leveled against you have been proved. Before we consider the findings of the enquiry officer, you are hereby given an opportunity as to what you have to say o the findings. You are given a period of three days to submit your reply. In case we do not hear from you within the stipulated time period, necessary action will follow, without further reference to you.

Manager/ Competent Authority

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NOTICE OF DISCHARGE TO AN EMPLOYEE To _______________ _______________ _______________ This has reference to the charge sheet dated_________ issued to you & enquiry held thereafter. We have duly considered the report of the enquiry officer and are satisfied that the charges as leveled against you have been proved against you in the enquiry. In view of the serious nature of misconduct committed by you & fully proved against you, it has been decided to dispense with your services. However, on compassionate grounds considering extenuating and aggravating circumstances, the management, instead of dismissing you from services has decided to impose lesser punishment of discharge on you with immediate effect from____________ Your final payment of dues including wages for 1 month in lieu of notice will be made to you in the office on or before____________ during office hours on any working day after you hand over the charge.

Manager/ Competent Authority

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ORDER OF DISMISSAL To _______________ _______________ _______________

We have received the enquiry report that was held on_______________ against you consequent to the charge sheet dated______________. After going through the proceedings of the enquiry, we find that the charges have been proved against you. Since the charge (s) committed by you is/are of serous nature, the appropriate punishment is dismissal from service. You are therefore, hereby dismissed from service with effect from ____________ you can collect your dues, if any, and settle your account on any working day during the office hours from Accounts Department.

Manager/ Authorised person with designation C.C : - The Accounts Deptt. for information if necessary action.

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ORDER OF REDUCTION IN RANK To _______________ _______________ _______________ Your past conduct and service records reveal that you have no initiative or sense of responsibility. Frequently, you have stayed away from duty & neglected your work. Time & again you were warned/ reprimanded but there has been no improvement. We tried our best to motivate you to take interest in the work & to observe regularity & punctuality but of no avail. You have been as careless as ever & have refused to perform your duties seriously. Your carelessness has not caused the work to suffer but it is also likely to effect the discipline among other members of the staff. Under circumstances we are of the concerned opinion that the post held by you entails greater responsibility that you can shoulder as you lack necessary initiative, which is required for the post. Therefore, we hereby give you 1-month notice to relieve you from the present post and instead assign you post of____________ with immediate effect from_______________. This post entails lesser responsibility & we feel that you will be able to perform your duty more satisfactorily in this capacity. However, you will be entitled to only those benefits and salary that the post caries. We must also make it clear that if you fail to show marked improvement & continue to conduct yourself in the way you have been doing, we shall be constrained to dispense with your services after holding enquiry, if necessary.

Manager/Authorized person with designation C.C: - The Accounts deptt for information & necessary action.

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ORDER OF WITHOLDING ANNUAL INCREMENT/(S) To _______________ _______________ _______________ In continuance of the charge sheet dated_____________ issued to you & the Enquiry held into the charges, this is to inform you that we were satisfied that you are found guilty of the charges leveled against you and severe punishment including dismissal/discharge can be inflicted upon you. However, on going through your past record & considering the nature of the misconduct by you the undersigned decide that this time a milder punishment will meet the ends of justice. Therefore, it has been decided to withhold your annual increment for___________year/years. During the period for which your annual increment is being withheld the management will watch your performance and conduct and if found satisfactory the grant of increment/ increments to you will be reconsidered on the expiry of the said period.

Manager/ Authorized person with designation C.C: - The Accounts deptt for information & necessary action.

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ORDER OF IMPOSING FINE AS A PUNISHMENT To _______________ _______________ _______________ This is in continuance of the charge-sheeted dated__________ issued to you & the enquiry held in pursuance thereof. As a result of the enquiry, the management is satisfied that the charges leveled against you amply proved. On the bases of the charges proved against you, dismissal from service would be rather appropriate in the ordinary course but in consideration that this for the first time that you have been found guilty of the charge, the management decides to afford you an opportunity to improve yourself & instead of awarding the extreme penalty, impose upon you a fine of Rs._________ as punishment.

Manager/ Competent Authority Date: C.C: - The Accounts Dept

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PROFORMA SUGGESTED FOR A CHARGE SHEET TO AN EMPLOYEE FOR HABITUAL ABSENTEEISM TO

Following are the charges against you: Perusal of your attendance record reveals that you are in habit of absenting yourself from your duties without any information and proper sanction of leave. Your absentee spells are on an increase and your absentee record for the preceding ________years are reproduced hereunder. MONTH DATES NO. OF DAYS OF UNAUTHORIZED ABSENCE ________ __________ ________________ XXX XXX XXX XXX XXX XXX You have been verbally advised to improve you attendance record and not to indulge in unauthorized absence from duties. But despite these verbal advises/reprimands and assurance given by you, you have not shown any improvement in your attendance. The above act of habitual absence on your part constituted major misconduct under certified standing orders of the company applicable to you and also affects the work of the company. You are hereby required to submit your explanation, if any to this charge-sheet within 3 days from its receipt failing which it will be presumed that you have no explanation to offer and the management will be free to take any action that may be deemed proper in you case. For _________________________

(Authorized Signatory)

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PROFORMA SUGGESTED FOR CHARGE SHEET FOR SLOWING DOWN WORK To, It is reported against you as under: 1. That on______(date) at about________(time) while on duty, you in combination with others, deliberately slowed down the work in a concerted manner and instigated Mr.B & C to adopt ‘go slow’ tactics. You further threatened Mr. D who did not want to follow the suit. 2. That while you prior production was_____ per day, your production on ________ and thereafter has been deliberately brought down to______ which is much below the normal production of a worker of average efficiency. 3. That the above acts/omissions on your part are highly objectionable being prejudicial to the interest of the company, which has to compete with other efficiently run enterprises. 4. That despite repeated advice not to adopt to ‘go slow’ tactics, by your superior/superiors, you did not adhere to the actual norms of production, you have been maintaining earlier but instead, kept on idling away your time. 5. As a result of your ‘Go Slow’ tactics and instigating others to slow down the work/production has considerably gone down, resulting into loss to the company. 6. The above acts on your part constitute major misconduct under certified standing orders no.______ and no._____ of the company applicable to you. You are hereby required to submit your explanation, if any to this charge-sheet within 3 days from its receipt failing which it will be presumed that you have no explanation to offer and the management will be free to take any action that may be deemed proper in you case. For _________________________

(Authorized Signatory)

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5.

THE IMPORTANCE OF Sec.9-A ‘NOTICE OF CHANGE’ IN INDUSTRIAL DISPUTIES ACT, 1947.

Under this section ‘No’ employer, who purposes to effect any change in the conditions of Service applicable to any workman in respect of any matter specified in the IVth Schedule of the I.D. Act., shall effect such change or changes; (a) Without giving to the workmen likely to be affected by such change a notice in the prescribed manner of the nature of the change or changes proposed to be effected ; or (b) Within 42 days of giving such notice ; Provided that no notice shall be required for effecting any such change or changes. (a) Where the change is effected in pursuance of any settlement or award or (b) Where the workmen likely to be affected by the change are persons to whom the Fundamental and Supplementary Rules, Civil Services (Classification, Control and Appeal) Rules, Civil Services (Temporary Service) Rules, Revised Leave Rules, Civil Services Regulations. Civilians in Defence Services (Classification. Control and Appeal) Rules of the Indian Railway Establishment Code or any other rules or regulations that may be notified in this behalf, by the appropriate Government in the Official Gazette apply.

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PRO-FORMA FOR NOTICE FOR CHANGE UNDER SECTION 9-A OF THE INDUSTRIAL DISPUTES ACT, 1947;

ON LETTR HEAD OF THE ORGANISTION CHANGE OF EMPLOYEES SERVICE CONDITIONS NOTICE (UNDER Sec. 9-A) In accordance with section 9-A of the Industrial Disputes Act, 1947, we hereby give notice to all concerned that it is our intention to effect the change specified in the annexure, with effect from………….(it should be after expiry of 21 days) in the conditions of service applicable to workmen in respect of the matters specified in the IVth Schedule to the said Act. Yours Sincerely, For & on behalf of the Management Authorised Signatory CC: To 1. Secretary of the Registered Trade Union. 2. Dy. Commissioner of Labour. 3. Asst. Commissioner of Labour. ANNEXURE 2 FORM B There has been erratic electric supply on Sunday when the weekly off day is observed. On representation made to the Authorities under the Electricity Board, the Management has been allowed to change the weekly of Sunday to Monday and as such all the workers are notified that after expiry of the notice period, they will have to work on Sunday instead of Monday.

NOTICE: Any employer intending to effect any change in the conditions of service applicable to any workman in respect of any matter specified in the Fourth Schedule (to the Act) shall given notice of such intention in Form-E. The notice shall be displayed conspicuously by the employer on a notice board at the main entrance to the establishment in the Manager’s Office besides that it will be sent to the concerned workmen individually more particularly when there is no trade union. Provided that where any registered trade union of workmen exists, a copy of the notice shall also be served by registered post on the Secretary of such union.

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6. COMPLAINTS AND ITS DISPOSAL 1. A written complaint is desirable to initiate disciplinary proceedings. 2. Disposal of complaints by factory manager. (a) Non-performance of duty (b) Insubordination (c) Disobedience PRELIMINARY ENQUIRY 1. Purpose of holding preliminary enquiry 2. When preliminary enquiry is to be held. 3. Preliminary enquiry is not compulsory. 4. Preliminary enquiry is not judicial in character. 5. Preliminary enquiry can be ex-parte. 6. Preliminary enquiry is of informal character. 7. Preliminary is not substitute of departmental enquiry. 8. Failure to take part in preliminary enquiry does not prejudice delinquent workman. 9. Report of the preliminary enquiry is not part of the formal enquiry. 10. Decision after preliminary enquiry. 11. Informal corrective methods after preliminary enquiry. 12. Right of the worker to get copy of preliminary enquiry and statement of witnesses. CHARGE-SHEET AND ITS DRAFTING 1. Absence of charge sheet violates the principle of natural justice. 2. Whether explanation should be called before issuing charge sheet.

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3. Who can issue charge sheet? (i) (ii) (iii) (iv)

Appointing authority or any other higher authority, Charge sheet can be issued by disciplinary authority. Officer other than appointing/disciplinary authority can issue chare sheet if authorized by rules. Charge sheet can be issued with consent or approval of appointing or disciplinary authority.

4. Vagueness of the charges: charges should not be vague. 5. There is no particular form of charge sheet. 6. Whether show-cause notice can be charge sheet? 7. Drafting of charge sheet and its essential ingredients. 8. Amendment in charge sheet. 9. Time to reply to charge sheet.

SERVICE OF CHARGE SHEET 1. Whether C.S. should be sent by post if refused. 2. Employer should give addresses of workers as required under Factories’ Act. 3. If registered letter is refused by addressee it amounts to service. 4. Endorsement “not met” or “not turned up to take delivery of the letter” is no service. 5. No service if registered letter delivered to someone else. 6. Putting up on the notice board is no service. 7. Sending copies of charge sheet to labor department or unions is no service.

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8. Proof of Service: If sent through peon or watchman, then his evidence is material. AD must be produced unless AD receipt is produced before the authorities, a presumption of registered letter having been served cannot be taken. GURBACHAN SINGH V/S YAGYASU RE-ROLLING MILLS 2001(4) LLN 1157 (P&H HC) 9. Provision of service of charge sheet in standing order will prevail. 10. When charge sheet is not served by court, in absence of any provisions in the standing orders, it should be published in some local newspaper in some regional language. REPLY OF CHARGE SHEET AND ITS CONSIDERATION 1. It is within the discretion of the discretionary authority to initiate the enquiry. 2. Even if no reply to charge sheet is received, it is incumbent for the employer to hold enquiry. 3. Whether reply of charge sheet should be considered by the enquiry officer. CONFESSION: A. Confession or admission of misconduct obviates holding of enquiry. There can be simple termination on receive of such reply to the charge sheet B. Confessional statement should be scrutinized with caution. C. Confession should be in terms of misconduct. D. Confession should be interpreted as a whole. E. Confession should be unconditional and unqualified. F. Confession should not be secured by threat or coercion or inducement.

G. Confession subsequent to dismissal whether can be relied upon? ADMISSION: If admission does not amount to confession then it can be used in evidence. APOLOGY: It should be unconditional with confession and admission where worker denies the charges and also backs for burden then his confession is not sufficient to dispense with enquiry.

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7. GRIEVANCES AND GRIEVANCE HANDLING 1. Grievances or conflicting thoughts are part of industrial life. 2. It is essential to bring this conflict to the surface. 3. All conflicts cannot be eliminated but their exposure will contribute towards their reduction. 4. Such exposures lead to adjustments and further improved organizational effectiveness. METHODS OF BRINGING CONFLICT TO SURFACE 1. 2. 3. 4. 5. 6.

Grievance procedure Direct observation Suggestion boxes Personal counselor Exit interviews Miscellaneous channels

GREIVANCE (A) Dissatisfaction is any state or feeling of discontent (B) Dissatisfaction orally made known by one employee to another is a complaint. (C) A complaint becomes a grievance when brought to the notice of the management. According to Fillipo, “The term would include any discontent and dissatisfaction that affects organizational performance. It can either stated or unvoiced, written or oral, legitimate or ridiculous. (a) A complaint is a discontent that has not assumed importance. (b) A complaint becomes grievance when the employee feels that injustice has been committed.

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CHARACTERISTICS OF GRIEVANCES (i) (ii) (iii) (iv) (v) (vi)

It may be unvoiced or expressly stated. It may be written or oral It may be valid, legitimate or untrue or false. It may relate to the organizational work. An employee may feel an injustice has been done. It may affect the performance or work.

Grievances generally give rise to unhappiness, frustration, indifference, discontent, poor morale, and poor efficiency THAT IS CHANGE IN ATTITUDE, PERCEPTION AND BEHAVIOR. TYPES OF GREIVANCE (a) Visible grievances (b) Hidden grievances An employee may feel that there has been an infringement of his rights. Grievances exist in the minds of individuals. Grievances may be concerning employment, working conditions, change of service conditions, biased approach, non-application of principle of natural justice, work loads and work norms. NEED FOR GRIEVANCE PROCEDURE (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) (xi) (xii)

Identification and analysis of grievances, nature nod causes. Helps at formulating and implementing the policies and programmes. It is problem solving, dispute-settling mechanism. Strengthen good industrial relationship. It detects the flaws in working conditions and helps to take corrective measures. Build good morale, maintains code of discipline. Brings uniformity in handling grievances. It develops faith of employees. Reduces personality conflicts. It acts as a pressure valve. Provides judicial protection to the employees. Provides avenues to present the problems.

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GRIEVANCE REDRESSAL SYSTEM Enables the parties to resolve differences in peaceful, orderly and expeditious manner. Enables the parties to investigate and discuss the problem (i) Open-door policy (ii) Step ladder type (iii) Grievance handling committee BASIC ELEMENT OF GRIEVANCE PROCEDURE 1. 2. 3. 4. 5. 6. 7. 8.

Existence of sound channel. The procedure should be simple, definite and prompt. It should be clearly defined. Helpful attitude of management. Fact-oriented system. Respect for decisions. Adequate publicity. Periodic Review.

STEPS IN HANDLING GRIEVANCES 1. Receive and define the nature of dissatisfaction. (a) Manner and attitude when complaint is received (b) Assessment must be made that the complaint is presented fairly. (c) Statement and issues must not be pre-judged. (d) Proper time and attention is given. 2. Get the facts (a) Facts be separated from impressions and opinions. (b) Consult the policies. (c) Consult the records. 3. Analyze and decide. 4. Apply the answer. 5. Follow-up

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DO’S IN HANDLING GRIEVANCES 1. Investigate and handle each case carefully 2. Talk to the employee. 3. Enforce the time limit. 4. Visit the work area or place of grievance. 5. Determine witnesses. 6. Examine records. 7. Examine witnesses. 8. Evaluate grievance. 9. Permit full hearing. 10. Identify the relief an employee is expecting. 11. Command the respect of all. 12. All discussions privately. 13. Keep superiors informed. 14. Ensure proper productivity. 15. Stick to labour agreements.

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8. MISCONDUCT AND DISCIPLINARY ACTION WHAT IS MISCONDUCT? Any act or omission on the part of an employee which is a breach of any duty, obligation or assignment arising under or flowing from any law or contract of employment or service rules or standing orders, settlements or awards or improper conduct or wrongful behavior is a misconduct. TYPE OF MISCONDUCTS Minor Misconducts The following acts or omission on the part of an employee shall amount to minor misconduct: 1. Late coming 2. Absence from duty without leaves for a period of less than six days 3. Loitering, gossiping in department during working hours 4. Failure to ware tight clothes/specified uniform. 5. Negligence of duties or neglect of work. Major Misconducts The following acts or omission on the part of an employee shall amount to major misconduct: 1. Willful insubordination or disobedience of any lawful and reasonable order of a superior. 2. Going on legal strike or abetting, inciting, instigation. 3. Willful slowing down in performance in work or instigation there of. 4. Theft, fraud or dishonesty in connection with the employer’s business or property. 5. Taking or giving bribes or any illegal gratification. 6. Habitual absenteeism without leave for more than 10 consecutive days or over staying the sanctioned leave without sufficient grounds. 7. Habitual breach of any standing order or any law applicable to establishment. 8. Collection without the permission of the manager or any money within the premises of establishment. 9. Engaging in trade within the premise sof establishment. 10. Drunkenness, Riotous, Disorderly or indecent behavior on the premises of the establishment. 11. Commission of any acts subversive of discipline or rude behavior on the premises of the establishment. 12. Habitual neglect of work or habitual negligence. 13. Canvassing for union membership or collection of union funds within the premises of the establishment.

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14. Willful damage to work in process or any property of te establishment. 15. Holding meetings inside the premises of establishment without the permission of the manager. 16. Disclosing to any unauthorized person any information in regard to the processes of the establishment. 17. Gambling within the premises of establishment. 18. Smoking or spitting on the premises of the establishment, where it is prohibited. 19. Failure to observe safety instructions notified by the employer or interference with the safety devices. 20. Distributing or exhibiting within the premises of establishment and bills, pamphlets and posters. 21. Refusal to accept a charge sheet order or other communication served in accordance with the standing orders. 22. Unauthorized possession of lethal weapon in the establishment. PENALTIES FOR MINOR MISCONDUCT Warning, fine, passing adverse entry in service records, recovery of loss of goods for which the concerned workman is accountable, recovery from wages of the whole or part of any loss caused by the workman through negligence. PENALTIES FOR MAJOR MISCONDUCTS The following penalties may be imposed for good and sufficient reasons if an employee found guilty of major misconduct. Warning or censure, withholding of increment, fine, stopping promotion, demotion, suspension, discharge, dismissal, vacation of company quarter or any other punishment which the manager may deem fit. PROCEDURE FOR AWARDING PENALTIES FOR ACTS OF MINOR MISCONDUCT Where allegation of misconduct against the workman are of minor nature, he is called upon the position verbally or otherwise. The manager or his authorized representative after hearing the concerned workman will decide if the workman deserves any punishment an if so pass orders accordingly. It is not necessary to hold enquiry in such cases.

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PROCEDURE AND CONDUCT OF ENQUIRY 1. The I.D Act or any other law does not prescribe any procedure to be followed by the employer in domestic inquiry. 2. In the absence of any statutory provision, the domestic enquiry do need not confirm to all the requirements of judicial proceedings, they however, must satisfy the essentials of principle of natural justice. 3. The guiding principle therefore, is that domestic enquiry should be conducted without bias and by giving the delinquent employee an opportunity for adequately presenting his case. 4. Apart for compliance with the rules and principles of natural justice, the domestic enquiry must be held honestly and bonafidely. COMPLIANCE WITH RULES 1. In holding enquiry standing order in industrial employment should be followed as the standing orders have force of law and constitute statutory terms of employment. 2. In holding enquiry statutory rules framed for the purpose should also be followed. 3. The enquiry must be conducted by an authorized person. SUSPENSION PENDING ENQUIRY A workman who committed a major misconduct may be placed under suspension by the manager. A workman under suspension shall not leave the town during the period of suspension without prior permission of the manager. A workman who placed under suspension pending enquiry shall be entitled during the period of such suspension to subsistence allowance in the following manner: (a) From the date of suspension till the date he replies to the charge sheet is received by the manager (nil.) (b) For the first 30 days from the date of receipt of reply of the charge sheet— 50% of the normal wages and dearness allowance. (c) For the next 30 days--- @ 60% of the normal wages and dearness allowance (d) From the 91st day onwards--- @ 75% of normal wages and dearness allowance. The workman shall not be entitled to subsistence allowance in case he takes up employment during the period of suspension.

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CHARGE SHEET AND ENQUIRY A) A workman against wage misconduct is alleged and is placed under suspension shall be served with a charge sheet within a week from the date of suspension. The charge sheet should be specific and give full details for the charges leveled against him. The date, time and place of incident should be mentioned in the charge sheet. When the misconduct depends on offending language, then actual words used should be specified in the charge sheet. The workman shall be called upon to submit his explanation within 48 hours, which may be extended for 6 days for sufficient reason on request in writing from the workman concerned. B) If the workman admits the charges against him, no enquiry need to be held and it shall be open to the manager to award punishment as he deems proper without holding the enquiry. C) If the workman does not submit his written explanation or explanation submitted by him are not found to be satisfactory or if he denies the charges alleged against him, an enquiry shall be held. D) The workman concerned in enquiry shall sign at the end of each statement recorded in his presence. Such workman may be assisted by another workman of his choice but he must be working in the company. E) The enquiry may be conducted either by the manager or any officer or person appointed by him for the purpose. F) The manager shall appoint an enquiry officer and management representative for the purpose of conducting domestic enquiry. G) Copy of the charge sheet along with all relevant documents should be handed over to the enquiry officer.

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NOTICE OF ENQUIRY a) it is very necessary to convey to the charge sheeted workman the name of the officer before whom he is to appear. The time, date and place of enquiry should also be communicated in the notice of enquiry. b) The management should give its evidence first to prove the charges alleged against the workman. c) The enquiry officer can ask the management to serve the notice of enquiry. d) The enquiry officer should decide in the beginning as to which procedure for major misconduct should be followed. e) If the charges rest on documents alone, it is not necessary to adduce oral evidence. EX-PARTE PROCEEDINGS 1. If the employee does not attend on the date of enquiry fixed and communicated then ex-parte proceedings can be taken against him. 2. When the worker insist that he must be allowed to be represented by is council and on refusal of the same he boycott the enquiry the such enquiry could be held ex-parte. 3. When the worker knows the date of enquiry and does not corporate then he enquiry officer or does not attend the proceedings, he cannot complaint if the proceedings are ex-parte. 4. If the worker intentionally refuses to participate in the enquiry, enquiry can be held ex-parte. 5. If the worker withdraws from the enquiry, it does not mean that he admits the charges alleged against him. The enquiry officer has to record evidence of the management in support of the charges.

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JUSTIFICATIONOF NON-ATTENDANCE BY WORKERS 1. Absence on account of protest is not justified. Even if some facility is denied the worker is not justified to withdraw from the enquiry. 2. If certain documents or copies are not supplied to the workman and he withdraw from the enquiry, it is not justified and enquiry could proceed ex-parte. 3. When a request of worker for being represented by an outsider or an advocate is disallowed, he cannot walk out and if he does so, ex-parte proceeding is valid. 4. If absence is on account of genuine illness and he has asked an adjournment on death grounds, it must be granted. 5. If an employee is on sanctioned leave and seeks adjournment on that ground, it must be granted. 6. If an employee is on hunger strike and it is not possible for him to defend himself, adjournment must be granted. 7. Adjournment is sought on the plea that the workman fears physical assault, the adjournment may not be granted. 8. Enquiry can be held on a holiday also and in the absence an application of adjournment, the enquiry officer is competent to proceed ex-parte. 9. Enquiry can be held even at night in case the concerned works day and night. Grant of adjournment s discretion of the enquiry officer, but as such a discretion must be exercised in a judicial and reasonable manner. An employee cannot be compelled to attend enquiry. If an employee does not attend an enquiry, then it can be held ex-parte but he cannot be charged for disobedience of orders.

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ROLE OF THE MANGEMENT REPRESENTATIVE 1. In departmental enquiries, the punishing authorities play a dual role. The said authority or its nominee conducts the enquiry on behalf of the management and judges the action of the delinquent employee. 2. The role of management representative is similar to the case of public prosecutor as he also conducts and pleads the case of management. 3. The role of MR is to conduct the case fairly and with full sense of responsibility. 4. It is not the duty of the MR to suggest any falsehood or suppress any facts. 5. The MR is also not expected to produce evidence, which stands to demolish his own case. 6. The role of MR can only be discharged properly if he sis equipped with the full knowledge of the case. The MR should also have the basic knowledge or procedure and process of domestic enquiry as well as to carry out the crossexamination of the charge sheeted employee as well of his defense witnesses. PRODUCTION AND INSPECTON OF DOCUMENTS When the charge sheeted employee thinks that certain document is likely to be useful for his defense and is in the possession of the management when he can apply for its production. 1. When a document is used against an employee, it should be disclosed to him. 2. Records of preliminary investigation if relied upon the management should be disclosed to the employee. 3. Documents having no evidentiary value need not be disclosed. 4. If no reliance is placed on a document during enquiry then it need not to be disclosed. 5. Documents necessary for cross-examination or defense should be made available if asked for. 6. If no prejudice is caused to the delinquent employee by non-production of documents, enquiry is not vitiated. 7. Inspection of documents can be given as an alternative to production of documents.

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BIAS IN DEPARTMENTAL ENQUIRIES A domestic enquiry must be held by an unbiased person. The bias in its proper significance is departure from the standard of even-handed justice which the law requires from those who occupy judicial office the doctrine of bias: 1. No man shall be judge in his own case. 2. Justice shall not only be done but manifestly and undoubtedly seem to be done. APPRECIATION OF EVIDENCE 1. Even though the onus of proving the guilt rest on the management, the probability or otherwise of the version of incident put forth by he workman has to be taken into consideration in determining his guilt and it cannot be altogether ignored. 2. The E.O. while appreciating the evidence should take care that the charges against the delinquent workman should no deemed to be proved merely on the facts that the worker could not put up strong defense. 3. If the employee has not produced any defense during enquiry, it cannot give rise to any presumption that whatever the employer witness states is correct. Disposition of the witnesses has to be judged on their merits. 4. It is not necessary to prove motives behind the act of misconduct. 5. While appreciating the evidence the E.O. should be extra careful for the disposition of chance witnesses. 6. The E.O. should not simply disbelief the witness or think unreliable, as the witnesses are a close relation of either party. Similarly, merely that middle and senior level officers depose for the management and the workers for the delinquent employee is no reason to disbelief them. 7. The E.O. while appreciating the evidence should be conscious of the fact that the credit of a witness does not depend upon his status. Truthfulness is not the monopoly of persons who are rich and who hold high status. 8. it is not necessary that there should always be one witness to prove any charge. The reason is that the evidence weighed and not counted.

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9. The E.O. should not consider the events subsequent to incidence for which an employee was charge sheeted. 10. In domestic enquiry the Doctrine of Benefit of Doubt is not applicable. Therefore, an E.O. is under obligation to arrive at conclusion of facts. 11. It is not the concern of the E.O. as to whether the act mentioned in the charge sheet has been proved or not. 12. E.O. is not interested with the power of imposing the punishment. His duty ends with the finding of facts. 13. While drafting enquiry report, specific findings should be given on each charge and in case of each person. 14. The finding should be specific and E.O. should come to conclusive findings of guilt.

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FINDINGS OF ENQUIRY 1. The whole object of holding a domestic enquiry against a delinquent workman is to enable EO to decide upon the merits of charges leveled against the employee. It is therefore, essential that the EO should submit the enquiry report indicating clearly his conclusion and reasons in support thereof. 2. The EO should not hold anyone guilty of the charges on suspicion. Suspicion, however reasonable, is not sufficient to punish the employee. 3. EO should not give the findings on assumption of facts and circumstances not supported by evidence on record. 4. The findings of the enquiry should be based upon the enquiry records and the EO should not impose his own knowledge of things while writing the report. 5. The EO is not justified in parting extraneous consideration while writing the enquiry report. 6. While writing the findings, EO cannot omit from considering any material on record. When EO disbelieves the worker and his witnesses he should give sufficient reasons. 7. The EO should bear in mind that the interpretation of document is a question of law. Admission of document thereof should be distinguished from the admission of the contents of the document. 8. EO should not give findings outside the scope of the enquiry. The scope of the enquiry is limited to the charges as mentioned in the charge sheet.

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9. FLOW CHARTS FLOW CHART OF DRAFTING OF CHARGE SHEET It is the first formal document containing the Articles of charge leveled against the delinquent employee, enabling him to file his statement of defense against these charges by specific date.

CHARGE SHEET OF TWO TYPES

MAJOR PENALTY

MINOR PENALTY

CONSISTS OF MEMORANDUM WITH 4 ANNEXURES:

CONSISTS OF MEMORANDUM WITH STATEMENT OF IMPUTATION AND MISCONDUCT

ANNEX I: Definite articles of charge ANNEX II: Imputation of misconduct ANNEX III: List of documents ANNEX IV: List of witnesses

COPIES OF LISTED DOCUMENTS SHOULD BE GIVEN ALONG WITH CHARGE SHEET CO. TO FILE WRITTEN STATEMENT OF DEFENSE AGAINST THE CHARGES BY THE STIPULATED DATE

CHARGE SHEET SHOULD CONTAIN

Each charge expressed in clear & precise term. Separate charge for each allegation - PBS.KUMAR

Rules to be mentioned correctly

Charges framed n a language understood by the delinquent official. - 49 -

Each article of charge to be accompanied by a separate statement of imputation

The proposed penalty should not be mentioned in the charge sheet

FLOW CHART OF DISCIPLINARY PROCEEDINGS Not entertained Complaint rejected Admin action* Complaint

Pursued

Preliminary investigation Pursued

dropped

IRO investigation

IRO finding s

MAJOR PENALTY Action Preliminary hearing of appointment by Def. A Inspection of docs & defense statements

Copy of inquiry report to CO

Representation of CO

Appointment by IO/PO

Regular hearing

Witness statement of defense

Prosecution case EC/CE/RE

Decision by DA

A. B. C. D.

MINOR PENALTY Action

Charge sheet

Statement of imputation of misconduct

Defense case EC/CE/RE

Written brief by PO & Def.A

Inquiry report

DA’s decision

Mandatory questions

Major penalty Minor penalty Exoneration Administrative action*

IRO: INDUSTRIAL RELATIONS OFFICER DA: DEISCIPLINARY AUTHORITY DEF.A : DEFENSE ASSISTANT IO: INQUIRY OFFICER PO: PRESENTING OFFICER EC: EXAMINATION-IN-CHIEF CE: CROS-EXAMINATION RE: RE-EXAMINATION CO: CHARGED OFFICIAL DOCS: DOCUMENTS

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2.Advisory Memo 3.Caution Memo 4. Warning 5.Recordable Warning

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Decision by DA

A. Minor Penalty B. Exoneration C. Administrative action

INDEX

*ADMINISTRATIVE ACTION 1. System improvement

Representation to the statement of imputations

FLOW CHART OF DISCIPLINARY PROCEEDINGS

STAGE 1: Written complaint (report of misconduct)

STAGE 2:

Preliminary enquiry

If there is no prima facie, drop the case

STAGE 3:

Suspension pending Enquiry if necessary

If the situation does not warrant his immediate suspension, the employee will be on duty and we get on to the next stage.

Order for payment of subsistence allowance

STAGE 4:

STAGE 5:

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Framing charge sheet under Standing Orders

SERVING CHARGE SHEET Direct service Regd. Post/U.P.C Notice boards Newspapers

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STAGE 6:

Study the reply given by the charge sheeted employee

If the charge sheeted employee pleads guilty and reply is satisfactory

If he does not plead guilty and the reply is unsatisfactory, proceed with the enquiry.

Major penalty minor penalty indecent exoneration Proceed enquiry

no further enquiry Award/punishment Caution/memo

STAGE 7:

Appointment of enquiry officer & presenting officer.

SERVING ENQUIRY NOTICE: Direct service/Regd. Post/UPC Notice boards/newspapers

STAGE 8:

If the employee does not report for enquiry, ex-parte enquiry ENQUIRY PROCEEDINGS

STAGE 9:

STAGE 10:

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Enhancement or reduction of subsistence allowance

ENQUIRY REPORT

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If the employee is fond not guilty, exoneration & suspension revokal letter issued.

STAGE 11:

If the charge(s) are proved, check the past record and if any conciliation or adjudication proceedings are going on, check Industrial Disputes Act provisions, check whether protected workman.

STAGE 12:

Final show cause notice before punishment, if provided under rules

STAGE 13:

STAGE 14:

Study the reply given by the employee to final show-cause notice

Give clarifications, if any asked for in reply to final show cause notice

STAGE 15:

STAGE 16:

STAGE 17:

STAGE 18:

STAGE 19:

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Punishment order

Appeal by the accused employee

Reply to appeal after review and final punishment order

Implementation of punishment order and closing the file

Contest the case if referred to conciliation/adjudication

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REGULAR HEARING (ORAL ENQUIRY)

(A) PRESENTATION OF PROSECUTION CASE

Documents placed on records and marked as exhibits

Examination of prosecution witness Exam In-Ch. By P.O. if any witness turns hostile, PO to get him declared hostile & with IO’s permission, cross-exam him and ask loading questions

Cross exam by CO/Def .A

Reexam by PO

Questions from IO if necessary, at any time during enquiry & if so, he is to allow crossexamine to both the parties.

(B) PRESENTATION OF DEFENSE CASE Defense document placed on record and marked as exhibits

Examination of defense witnesses Exam-in-ch by CO/Def.A

Crossexam by PO

Reexam by CO/Def .A

Questions from Io if necessary, at any time during inquiry & if so, he is to allow crossexam too both the parties

© CO. MAY GET HIMSELF EXAMINED IN HIS OWN DEFENSE If he does not then,

If he does then, Exam-in-ch by Def.A. if no Def. A then suo moto can make a statement

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Cross exam by PO

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Re-exam by CO/Def. A

IO to ask mandatory questions

Oral enquiry closes

(D) SUBMISSIONOF BRIEFS & REPORTS OF IO

First by Prosecution with a copy to CO

Then, Defense to give the brief within the stipulated time

(E) EVALUATIONOF BOTH THE BRIEFS ON THE BASIS OF:

Judicious & objective approach without the rigorous procedure of courts.

Assessment of evidence on the basis of ‘preponderance of probability’ and not that of ‘beyond reasonable doubt’

For each stage IO to give his findings whether a charge is:

PROVED

NOT PROVED

PARTIALLY PROVED

Report of IO goes to DA along with extra copy for CO.

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FLOW CHART OF ENQUIRY PROCEEDINGS OF MAJOR PENALTY CASES

DA APPOINTS

PRESENTING OFFICER

INQUIRY OFFICER

Receives appointment orders Check records Presents the case on behalf of management

Fixes preliminary enquiry and issues notice

Charges read out in preliminary hearing Presents the listed documents for inspection and taking on record.

If not admitted by DA Directs CO to give

a) Name of Def.A if not already done b) List of defense documents c) List of defense witnesses

Fixes the date of regular hearing Direct P.O to produce witness Oral enquiry starts - PBS.KUMAR

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10. PRINCIPLES OF NATURAL JUSTICE The Industrial Disputes Act, 1947 lays down that conduct of domestic enquiry in utter disregard of the principles of natural justice is an unfair labour practice. Therefore, the principles of Natural Justice need to be kept in mind during the enquiry proceeding: of course strict rules of Civil Procedure Code and of Evidence Act do not apply to domestic enquiry. Natural justice is a term, which summarizes certain minimum standards of fairness to secure justice or to put it negatively to prevent miscarriage of justice. The concept of natural justice is varying one and all that it implies is that that there should be a fair deal for all concerned. Natural justice has no straight jacket and application of its principles would depend upon facts and circumstances of a particular case. There cannot be an exhaustive list of principles of Natural Justice. However, broadly speaking, the following rules of natural justice are of universal application: 1. “Audi alterm partem” i.e. hear the other party. It means that no one should be punished without the proper opportunity of being heard. The employee proceeded against should be informed clearly of the charges leveled against him. 2. “Nemo judes in cause sua” i.e. no man can be the judge of his own case. To illustrate, the Inquiry Officer should not be a complainant or a witness of the alleged misconduct. 3. Justice must not only be done but should also seem to be done. Therefore, the whole conduct of the Enquiry Officer should be transparent, honest and in good faith. 4. The procedure with regards to disciplinary action prescribed in the Service Rules or Standing Orders must be followed both in letter and in spirit. 5. The notice of enquiry should be given sufficiently in advance. If the enquiry is started straight away without giving such notice to enable the person charged to prepare his defense, the enquiry would be in violation of the principles of natural justice. 6. The enquiry should be conducted in the language understood by the employees proceeded against. 7. the enquiry should be conducted in an orderly manner and not with haste. 8. The employee proceeded against should be informed on the very outset, about the accusations against him in as clear and specific terms as practicable.

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9. List of witness proposed to be produced by the management should be supplied before the start of the enquiry. 10. The concerned employee should be allowed to take the assistance of another employee in accordance with the provisions of Service Rules or Standing Orders. But he cannot be allowed to engage an Advocate unless the Presenting Officer pitted against him as an Advocate or he is otherwise a legally trained person or when complicated questions or fact of law is involved. 11. All the documents sought to be relied upon by the management to prove the charges be placed on the record, at the outset. 12. The basic and cardinal principle is that one who has to prove the charge has to lead the evidence first. As the management has leveled the charges, it is its duty to prove the same. The common mistake is that in the course of the enquiry proceedings the evidence of the delinquent employee is recorded first. This vitiates the whole enquiry. 13. At the outset, the Enquiry Officer should read out and explain to the concerned employee the contents of the charge-sheet and ask him whether he admits or denies the charges. If he admits the charges leveled against him, it is not necessary to proceed further with the enquiry, but to record his statement. 14. When the concerned employee does not admit the charges, the enquiry has to proceed further. The witnesses of the management are to be examined in the presence of the employee and he should be given full opportunity to crossexamine them. 15. The employee proceeded against should be given fair and reasonable opportunity to produce witnesses and documents in support of his defense. If he does not want to produce any evidence, his statement should be recorded to that effect. 16. Witnesses should be examined in such a manner that a witness cannot hear what the previous witness has said. 17. If the delinquent employee wants either to inspect the documents or the statements of the witnesses or to take notes or to have relevant extracts or make copies thereof, this should not be denied. The basic idea is not to conceal but reveal the relevant information. 18. After the completion of production of evidence by both the parties, the Enquiry Officer may hear the Presenting Officer and the delinquent employee or the enquiry Officer may permit them, if they so desire, to file written brief of their respective cases.

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19. Findings of the Enquiry Officer should be based only on the evidence recorded. 20. Evidence, either oral or documentary, which is not produced before the Enquiry Officer in the presence of the employee, should not be relied upon to prove the charges. 21. No material should be relied upon the delinquent employee without his having been given an opportunity of explaining the same. 22. The Enquiry Officer should not be influenced by any fact which might have come to his notice in his personal capacity or by any other extraneous considerations, in arriving at the decision regarding the guilt or other wise of the accused employee. 23. Reasons given by the Enquiry officer for his findings should be adequate though the ‘benefit of doubt’ theory has little application in domestic enquiries. 24. The report of the Enquiry officer should be a speaking one. That is to say, he must give reasons for his findings. 25. Findings of the Enquiry Officer on each of these should be clear, precise and without any ambiguity. 26. The report of the Enquiry Officer should give a clear impression that he is impartial and free from bias. Bias means an operative prejudice towards one side or the other. 27. The employee if suspended should be paid due subsistence allowance. In the cse of Capt. M Paul Anthony v/s Bharat gold mines 1999 (82) FLR 627, the Supreme Court has termed non-payment of subsistence allowance, during suspension, slow poisoning and this vitiates the enquiry.

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11 . CRIMINAL PROCEEDINGS V/S DEPARTMENTAL ENQUIRY 1. When misconduct is offence then choice is with the management to prosecute or start enquiry, 2. It is not necessary to stay departmental proceedings during proceedings before criminal court. 3. If departmental proceedings on the same charge is not stayed by the criminal court, it does not amount to contempt of court. 4. Departmental enquiry should not be stayed during police investigation. 5. Employer can await the decision of the criminal proceedings. 6. Employer is not liable to wait till the final outcome of the criminal case. 7. If the worker starts criminal proceedings, he cannot insist that departmental proceedings should be stayed. 8. Whether strike should be declared illegal before departmental proceedings. 9. If enquiry is held and the worker is dismissed then, subsequent acquittal by criminal court does not affect. 10. When a person is convicted then it justifies the dismissal order. 11. Effect on departmental action when conviction is set aside. 12. Whether departmental enquiry can be held after acquittal. 13. Whether acquittal by criminal court is binding on the disciplinary authority. M. PAL ANTHONY V/S BHARAT GOLD MINES AND ORS 1999 FLR (627) & LLR (499) SC

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12. NOTES ON INDUSTRIAL EMPLOYMENT (STANDING ORDERS) ACT, 1946 The Industrial Employment (Standing Orders) Act applies to every industrial establishment wherein one hundred or more workmen are employed or were employed on any day of the preceding twelve months. It can be extended even to establishments whose employment of labour is less than one hundred and it does not apply to an industry to which Cl.VII of the Mumbai Industrial Relations Act,1946 applies or to any industry to which the provisions of the Madhya Pradesh Industrial Workmen (Standing Orders) Act, 1959 applies. In other words, normally the Standing Orders have to be drafted by the employer and their certification obtained under the Act wherever establishment employs more than one hundred workmen. In Section 1 (3) the certifying authority is Dy. Commissioner of Labour in the respective jurisdiction. The employer should required to define with sufficient precision the conditions of employment under them and to make such condition known to workmen employed by them. In case the employer fails to get his standing orders certified, the respective State Model Standing Orders will become applicable. It is advisable that instead of applying the model standing orders the employer should get the standing order certified. The standing orders which are certified under Industrial Employment (Standing Orders) Act become part of the statutory terms and conditions of service between the employer and employees. Any Term or condition of service which is contrary to the standing orders, certified under the Industrial Employment (Standing Orders) Act, 1964 if incorporated in the letter of appointment be implemented or acted upon. If the standing orders make it obligatory to hold an enquiry into an act of misconduct before dispensing with the services of the delinquent employee then such a provision cannot be circumvented by having a resort to the terms in the appointment letter providing removal without enquiry.





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13.

DRAFT STANDING ORDERS OF M/S.___________________

1. a)

APPLICATION AND SCOPE : i)

These orders shall apply to all employees of M/s. Arani Agro Oil Industries Limited. ii) These orders shall come into force with effect............. b)

RULES REGULATIONS AND NOTICES : The company may formulate such rules and regulations not inconsistent with these Standing Orders, and post such Notices as it may from time to time consider necessary. The rules, regulations, or notices shall apply to the whole, or to any section or sections of the Company's Employees as may be notified in the said Rules and Regulations and every workman shall obey the Rules and Regulations applying to this section.

c)

THE COMPANY'S RIGHTS : The Company's rights relating to fines and deductions under the Payment of Wages Act, 1936 and rules made thereunder shall not be effected or prejudiced by the terms of these Standing Orders.

d)

THE WORKMEN RIGHTS : These Standing Orders shall not deprive the workman of their right to resort to legal proceedings under any existing law for the time being in force.

e)

AMENDMENTS: The Company may from time to time, amend these orders in accordance with the provisions of the Industrial Employment (Standing Orders) Act, 1946 or any amendment thereof.

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2.

DEFINITIONS : In these orders, unless there is anything repugnant to the subject or context :

a)

"Company" means the______________________________, situated at Administrative Offices and Corporate Offices Branches of the Company wherever they are located.

b)

"Management" means Managing Director, and/or Executive Director and/or President, and/or Vice-President and/or General Manager of Factory or any other person authorised to act on his or on their behalf or on behalf of the company from time to time.

c)

"MANAGER" means the Factory Manager as noticed under the Factories Act, 1948 and any other Officers nominated by the Company as the Manager, for the purpose of these Standing Orders.

d)

"FACTORY" means the __________________ or any similar Factory situated at at any other place where the company may start

e)

"MUSTER ROLL" includes the attendance register or Muster Roll or Muster Rolls normally maintained at the time office or any other place specified by the Management for the purposes of recording the attendance of the employees before the commencement of work.

f)

"ATTENDANCE " means presence of the workman concerned at the place or places where he is required to report for getting his attendance and continuance of his presence at the place of his work throughout the period of the shift or office work.

g)

"TIME OFFICE" is a place in the premises where every workman is required to appear for marking his attendance before and after his duty each day in the manner prescribed from time to time by the management.

h)

"WORK MAN" means any person employed in the establishment within the meaning of Section 2(i) of the Industrial Employment (Standing Orders) Act, 1946.

i)

or any "WORK PREMISES" means the Factory ____________________ site, its Administrative Office premises and percent’s thereof or any other place of work where a workman is deputed to work.

j)

"HABITUAL" means involving repetition of any of commission or omission for more than 3 times in a period of 12 calendar months.

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or

k)

"WAGE RATE" means rate of pay per day to per calendar month.

l)

"MASCULINE" shall include "Feminine" unless otherwise stated and the "Singular" shall include the "Plural", wherever the context so requires and vice versa.

m)

"NOTICE BOARD" shall mean the Board or any place in or at the main entrance of the ________________________ factory or at any other Conspicuous place in the Factory, where notices meant for workman are ordinarily displayed.

n)

"NOTICE" shall means a notice in writing required to be given or posted or displayed for the purposes of these standing orders.

3.

CLASSIFICATION OF WORKMEN: a) e)

Regular/Permanent b) Probationer c) Temporary d) Badli Casual f) Apprentice g) Trainee h) Stipend.

a)

REGULAR/PERMANENT : A Regular/Permanent workman is one who is appointed as such by a written order of the management who has been engaged on a permanent basis and includes any person who has satisfactorily completed a probationary period or extended period of probation.

b)

PROBATIONER : Means a workman who is provisionally employed to work in a permanent vacancy and who has not completed satisfactory service of probation including absence due to sickness, accident, leave, lock-out, strike (not being an illegal strike) or involuntary closure of establishments, provided, in any particular case, the management may extend the period of the probation of any workman upto a further period not exceeding 12 months if they are not satisfied with the work and or conduct of any workman during the period of probation. In any case where the period of probation is extended, the concerned workman shall be informed in writing at least one week before the normal date of the completion of probation and in the absence of any intimation, the workman shall be deemed to have satisfactorily completed the probation on the normal date. If a permanent workman is employed as probationer (in a higher post) or a vacancy he may at any time during the probationary period be reverted to his substantive post without notice.

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During the period of probation aforesaid the workman's suitability to work and performance at his job shall be remainder with him by the superior at least once before he is confirmed or discharged. c)

TEMPORARY WORK : Means a workman who is employed for any work of causal nature and who has been issued a casual card by the Company.

d)

CASUAL WORKMAN : Means a workman who is employed for any work of causal nature and who has been issued a casual card by the Company.

e)

APPRENTICES : Means a person who is undergoing apprenticeship training in a designated trade in terms of the Apprenticeship Act 1961 and the rules framed thereunder.

f)

TRAINEE : Means a person engaged to undergo training in the training programme initiated by the management. After completion of the training successfully, he will be given a certificate to that effect. The trainee may be paid stipend or may not be paid any stipend by the management. The management may fix the period of training programme which may not exceed one year. The satisfactory completion of training does not impose upon the management to absorb the trained person in the organisation. The management may absorb the trainee in the organisation at their sole discretion after the training programme is completed provided the management feels that he is suitable and also there is a vacancy existing as on the date. In case the management cannot provide him with a job, he will be given a certificate to the effect that he has undergone training successfully in the organisation fit to be absorbed. The Management can terminate the training period of a trainee without as signing any reason whatsoever.

h)

STIPEND : Means remuneration paid to the persons concerned which cannot be treated as a 'wages' as defined in various labour enactments and precedents.

4.

IDENTITY CARD :

a)

Every workman shall be given Identity Card bearing his photograph, name, token No., and any other particulars deemed necessary by the company and all other workman will be issued appropriate Identity Card.

b)

Every workman shall always wear on his person during the working hours of the Company and shall show his Identity Card to the Security Personnel at the gate when entering and

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leaving the Factory or on demand at any time by the security or any other authorised person to produce it while the workman is inside the work premises. c)

The Identity Card shall not be transferable nor assignable.

d)

In case any workman looses his Identity Card he must immediately report in writing to the Issuing Authority for issue of New Card on payment of Rs.5.00 towards the cost of Identity Card.

e)

The Identity Card issued to any workman shall be surrendered by him on the termination of his services, or during period of suspension to the Issuing Authority.

f)

Any workman who has forgotten to bring his card shall report such lapse to the Security Personnel who may issue to him a temporary card/permit on that particular day only and permit him to enter the Factory/Company . At the time of leaving the company it shall be duty of the workman to surrender the temporary card/permit to the Security Personnel.

5)

ENTRY, EXIST AND SEARCH :

a)

All workmen shall enter and leave Farm, Factory, Hatchery, Feed Mill or work premises only by the gate or gates provided for the purposes by the Company. The gate or gates may be closed during the working hours at the discretion of the Company and the workman must not leave the Premises without prior permission in writing from appropriate authority in the form of a gate pass which shall be shown at the gate.

b)

On entering or leaving the Factory/Company or work premises and at any time while on duty, all workmen are liable to be searched by the persons deputed at the discretion of the Company. Female employees will be searched by female searcher who may be appointed for that purpose by the Company, provided that no such search shall be conducted except in the presence of one other person of the same sex as the workman concerned.

c)

Any workman who has been granted leave, laid off, suspended, discharged, resigned or is not working for any other reasons, shall leave the work premises immediately. In case the workman does not leave the work premises in the aforesaid events, the company shall be at liberty to take appropriate steps for his removal from the work premises and shall take such action as presented under the standing orders.

d)

The Company has the right to remove from those searched, any articles belonging to the company or such other articles as the company may consider would endanger the personnel

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or property of the company and seize the articles found with him as deemed to be the property of the company. He shall also be liable to disciplinary action in terms of these standing orders. 6.

PUBLICATION OF WORKING HOURS : The period and hours of work for all classes of workmen in each shift shall be displayed in English and Telugu in the Notice Board of the establishment and every workman shall observe such periods and hours compulsorily. The periods and hours of work for all classes of workmen in each shift will be signaled by means of a whistle or siren or bell but will not entitle worker to attend late or depart early.

7.

PUBLICATION OF HOLIDAYS AND PAY DAYS :

a)

Notices specifying the weekly holidays under section 52 of the Factories Act 1948 and such other days observed and declared by the Company from time to time as Holidays shall be displayed in the Notice Board.

b)

The day or days on which wages will be paid shall be displayed on the Notice Board.

c)

All workmen shall be paid wages on a working day on or before the expiry of the 7th day after the expiry of the work period in respect of which the wages are payable.

d)

All such notices required to be posted under these standing orders, when posted on the Notice Board shall be deemed to have been served on the workman for whom they are required to be informed.

8.

PUBLICATION OF WAGE RATES :

a)

Notices specifying the rates of wages payable to all categories of workmen shall be displayed in English and Local Language on the Company's NOTICE BOARD.

b)

An unclaimed wage day (i.e, a day on which wage due to a workman and not paid on the usual pay day for want of claim) shall be notified on the Notice Boards along with the notices to be displayed.

c)

The unclaimed amount of wages due to a workman shall be paid on the unclaimed wage day following the day on which a substantiated claim was presented by the workman or on

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his behalf by his legal representatives provided that such claim is submitted within one year from the date the claim falls due. 8.

NOTICE & METHOD OF POSTING : General Notices required by these standing orders shall be deemed to be sufficient given or served if posted on the Notice Boards maintained for such purposes and in case of absentees, if these concern the individual worker or worker who is/are about and are not of general nature, shall be sent to their last recorded or known address under certificate of posting.

9.

SHIFT WORKING :

a)

Shift working will be regulated in accordance with the provision of the Factories Act. More than one shift may work in a Department or any Section of a Department at the discretion of the Company. Notices showing the shifts working in each Department shall be pasted on the Notice Board. It is open to the company to change the number of shifts and the shift hours depending on the exigencies of work.

b)

Workman shall be liable to the transferred from one shift to another at the discretion of the Company.

c)

Shift working may be discontinued or reduced giving a notice as per Section 9A of the Industrial Dispute Act, 1947 at the discretion of the company. Permanent workmen affected by such discontinuance or reduction in the number of shifts will be treated in the manner as provided for in the Industrial Dispute Act and Rules thereunder.

d)

No notice of 21 days for discontinuance of any shift shall be necessary if as a result of the discontinuance of any shift, no regular workman is discharged.

10.

ATTENDANCE AND LATE COMING :

a)

All workmen shall be at the work spot at the time fixed and notified under standing order No.6 and register attendance in the manner prescribed. Workmen shall be liable to be shutout and treated as absent if they are not at work spot at the schedule time. However, workmen who come late may be admitted for work at the discretion of the company subject to wage deduction for the time of absence from duty as per Payment of Wages Act, 1936 and as amended from time to time.

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b)

Workmen shall be allowed 5 (five) minutes grace time at the start of the shift only thrice a month. But no grace time shall be allowed during mid shift break. If a workman is late for more than three times in a month, it will be treated as half-day absent on the part of the said workman and wages shall be deducted for such absence accordingly.

c)

No Workmen shall be allowed to leave the work spot during working hours without proper permission from the appropriate authority in the prescribed form as may be prescribed by the management from time to time.

d)

Any workman who, after getting his attendance registered in the manner prescribed, is found sleeping or absent from his proper place or places of work during working hours without permission shall be treated as absent from the place of his work and his wages shall be subject to deduction in accordance with the provisions of the Payment of Wages Act, 1936 as amended from time to time. He will be further liable for disciplinary action as presented under these standing orders.

e)

No Workman shall leave machine or plant without being relieved by the reliever. In case his reliever does not turn-up, the worker shall obtain permission from the in charge, before leaving the place of work. In case he is directed to stay and continue to work, he shall comply with the instruction so given and failure to continue work shall be treated as misconduct under these standing orders.

f)

Workmen in emergency may be called at any time even outside their duty hours for attending any of their jobs, refusal will amount to willful insubordination and disobedience as mentioned in standing order clause 22 of the orders.

11.

NATIONAL AND FESTIVAL HOLIDAYS : The workman will be given National and Festival Holidays as per the provisions of the Andhra Pradesh Industrial Establishment (National and Festival) Holidays Act, 1964 and as announced by the Labour Department of the concerned jurisdiction from time to time.

12.

STOPPAGE AND SHUT DOWN :

a)

The company may at any time in the event of fire, catastrophe, breakdown of machinery or stoppage of power supply, epidemic, civil commotion, shortage of raw materials, lack of orders or other causes beyond its control, stop any section/department/sections/departments

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of the company, wholly or partially for any period or periods without notice subject to the provisions of the Industrial Disputes Act, 1947. b)

In the event of such stoppage during working hours the workman affected shall be notified as soon as practicable, by notices put-up on the Company's Notice Board in the Departments concerned and on the Notice Board near the main entrance, as to when work will be resumed, and whether they are to remain or leave their place of work. The workman so detained shall be entitled to receive wages for the said period as a result of the stoppage. In the case of piece rate workmen, they will be paid for the period of detention basing on their average daily rate. No other compensation will be admissible in the case of such stoppage.

13.

RESUMPTION OF WORK AFTER SHUT DOWN : If an when a Department/Departments are to be re-opened after shutdown, closure, lockout or stoppage, the date of resumption of work in these Departments will be notified by Notice on the Notice Board at least 40 hours in advance, or by publishing in local News Paper.

14.

ESSENTIAL SERVICE : The following Departments and workmen comprise the Company's Essential Services. They should be available at all times and in all times and in all cases of emergency and shall not resort to any type of strike.

a)

Fire protection.

b)

Watch and ward Security/Vigilance.

c)

Telephone Operators.

d)

Welfare Departments/Services.

e)

Maintenance Services and Repairs Departments.

f)

Transport.

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g)

Power and Water Supply/Boiler House.

h)

Dispensary & Hospital.

i)

Canteen.

15.

TERMINATION OF EMPLOYMENT :

a)

Services of permanent workmen may be terminated by either party giving to the other one month notice in writing or paying one month wages in lieu of such notice, as required, under the rules of the Company.

b)

If any Departmental proceedings are pending against the workman, he cannot resign from the service, giving notice as required in case the management desired to continue the proceedings against him.

c)

If a workman leaves before the expiry of the period of notice of termination by the Company, he will be paid only for the period he actually worked. If a workman does not report for work after giving notice of his intention to resign, or reports for duty for a few days and stays-away without serving the full notice period, he will be treated as a workman leaving without notice, and an amount equivalent to his salary or wages for the requisite period of notice shall be recovered. If a workman gives notice of his intention to resign, the management may accept resignation and relieve him at once or any time before the date of expiry of the notice period, in which case he will be paid only for period he actually works.

16.

PROCEDURE FOR APPLYING FOR EARNED LEAVE WITH WAGES :

a)

Annual leave with wages shall be attend in accordance with the provisions of the Factories Act, 1948 and the rules made thereunder, and as amended from time to time.

b)

A workman who desires to obtain leave of absence shall apply to the Manager through his Departmental In-charge at least 14 full working days in advance of his proposed leave. The manager or the person authorised in this behalf shall issue orders on his application within a week of his application or two days prior to commencement of leave applied for, whichever is earlier. In case of emergency, the period of 14 days shall be reduced at the discretion of the sanctioning authority. If the leave asked for is refused or postponed, the fact of such refusal or postponement, and the reasons thereof shall be informed to the said workman and recorded in writing in the Register to be maintained for the purpose.

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c)

Sanction of all kinds of leave will be at the sole discretion of the Management depending on the exigencies of the work of the company. The Company reserves the right to refuse, revoke or curtail the leave as the exigency of work demands.

d)

A Workman may apply for earned leave at his credit or for any portion thereof in prescribed form. The earned leave shall not be granted in more than three installments, in a year. However the Manager may at his discretion, relax the limit of 3 installments.

e)

Earned leave will not be accumulated for more than 30 days at any time and the un availed leave over and above thirty days will be brought forward to the next calendar year subject to the accumulation of 90 days maximum.

f)

A permanent workman may apply for causal leave, if there is any settlement/agreement for such causal leave. The casual leave so applied shall not be more than three days at a time, out of the entitled casual leave for the year as agreed upon by both the parties from time to time. Unavailed casual leave except to the extent of leave refused by the management due to any reasons cannot be brought forward to the next calendar year. In the sense that unavailed casual leave will lapse at the end of Calendar Year.

g)

Casual leave will not be combined with any kind of leave.

h)

Casual leave (other than refused) and sick leave will lapse at the end of calendar year or as per the rules that may be framed by the Company in this regard.

i)

A workman who is on leave should not take service or accept any employment or do anything which involves the receipt of any kind of monetary benefit, salary honorarium or any sort of emoluments and/or have any profit motive without obtaining the previous sanction in writing from the management, through proper channel. Any workman indulging into activities as mentioned herein will make himself liable for disciplinary action and/or forfeiture of all privileges for that year.

j)

The Manager, or any other person authorised in writing by the Manager, will be the sanctioning authority of any kind of leave as stated above.

k)

No workman should leave his head-quarters or premises of the work in anticipation of a grant of leave/permission of the competent authority in writing.

l)

In exceptional cases, an extra-ordinary leave up to a period of 15 days may be granted to a worker on loss of pay during a year at the discretion of the sanctioning authority. If any

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workman falls sick, the extra ordinary leave applied for can be extended to the extent prescribed by the Medical Officer of the company provided this shall be withdrawn if the workman is covered by the Employees State Insurance Act.

17.

EXTENSION OF LEAVE : If a workman after proceeding on leave, desires an extension thereof, he shall apply to the Manager in advance and the managers reply sanctioning or rejecting such request shall be communicate to the workman to reaching him before the expiry of the sanctioned leave.

18.

LOSS OF LIEN ON THE APPOINTMENT :

a)

If a workman absents himself without leave for 8 days or continuously absents himself beyond the period of any kind of leave originally granted or subsequently extended he shall loose his lien on his job unless he returns within 8 days from the date on which he remained absent or within 8 days of the expiry of extended leave as the case may be and explains in writing to the satisfaction of the Manager, his inability to return before the expiry of his leave of his absence without leave.

b)

A workman losing his lien in the above manner shall be entitled to be kept on the 'BADLI' list.

19.

ANNUAL INCREMENT : If any workman fails to put in 240 days of attendance including breaks due to sickness, accident, leave, lock-out, strike (not being an illegal strike) or involuntary closure of the establishment in a year i.e., incremental year, he will not be eligible for the granted increment for that year.

20.

TRANSFER :

a)

The company shall have the right to transfer any workman at any time from one job to another of a similar or equivalent nature of department or section or to any. factory where the company has got its similar nature of work or any other factory or office as the case

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may be. Without reducing his emoluments and without effecting his seniority. In case of refusal of such workman shall be considered as absent from the duty for the period of such refusal and also corresponding deduction shall be made from his wages in accordance with the permissions of the Payment of Wages Act. Notwithstanding workmen may be liable to disciplinary action. b)

If a workman is transferred from one department to another, and allotted another work, he shall carry out that job and abide by the timing of the work in the changed department, subject to his emoluments and seniority being protected.

21.

RETIREMENT : The company reserves the right to retire from the service any workman who has attained the age of 58 years or has completed 35 years of full time service in the company whichever is earlier. Provided that the management may in the discretion extend the period of service of any workman on reaching the age of superannuating as the case may be for such longer period as may be considered necessary. If any workman is found for any reasons physically, or mentally in capable of carrying out the duties, on being so certified by the medical officer of the company to that effect, may be terminated from service by giving due notice or wages in lieu of notice and such other compensation as or admissible under the law. For this purpose every workman at the time of his recruitment shall furnish proof of age to the satisfaction of the management. Every workman may if he so choose, rectifies the age, within a period of two years giving valid reasons for such changes. After the period of two years the request of the workman to rectify his date of birth or age will not be considered. In determining the date of retirement, extract from the Birth Register or a School Certificate or age admitted in LIC Policy will be admitted as proof of his age. In the absence of either of these proof the age as determined by a Medical Officer authorised by the Company shall conclusive evidence as to the age of workman.

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22.

ACTS OF MISCONDUCT : Without prejudice to the general meaning, the term misconduct shall be deemed to mean and include the following : a)

Willful in-subordination or disobedience whether alone or in combination with another or others of any lawful or reasonable order of a superior.

b)

Striking work or inciting workmen to go on strike in contravention of any agreement of rule having the force of law.

c)

Loitering, idling during duty hours and neglecting duty of work including malingering, sleeping while on duty or remaining in the company's premises after his normal or extra duty hours in that permission.

d)

Irregular in duty and/or habitual late attendance or absence from appointed place of work during working hours without permission. Failure to carryout work in accordance with general or specific instructions given by the superior or officers of the company directly or though delegated authority.

e)

Willfully causing damage or breakage or loss to the company's properties or work-in process including sabotage or abetment or instigation thereof or irresponsible action resulting in damage to any goods or properties in the. Factory/Company/premises.

f)

Theft, fraud, or dishonesty in connection with Company's business or property or another employees property or customers property in the Factory/Company premises.

g)

Habitual absence without leave or absence without leave for more than three consecutive occasions or over-staying sanctioned leave without sufficient grounds or proper or satisfactory explanation including absence from the workman's appointed place or work without obtaining permission.

h)

Disclosure, or communication to any unauthorised person, information or documents relating to the company's business or security measures or any trade secrets in regard to any work or process used in the Factory/Company/ which may come into the possession of the workman or using commercialising any invention, discovery or

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patent invented, discovered or patented in the course of workman's employment under the company to the benefit of himself or any other person. i)

Participation or incitement to other to take part in activities detrimental to company’s interest.

j)

Taking, giving, offering or demanding bribes or any illegal gratification whatsoever.

k)

Deceptive or corrupt practices in connection with the work of the company.

l)

Drunk ness or intoxication while on duty, fighting, riotous or disorderly behavior or indecent behavior including manhandling, beating, abusing, threatening or intimidating any one within the premises of the Factor/Company as defined in clause 2 (u), or any act subversive of discipline.

m)

Distribution or exhibiting inside the works premises, hand bills, pamphlets, or posters and collection of any money, except as permitted by any law, for the time being in force, or doing any propaganda work including canvassing for Union Membership or collection of Union dues or taking out any procession in the premises of the Factory/Company without the previous permission of the management.

n)

Smoking in the works premises, except in the places where smoking is prohibited.

o)

Wrongfully confirming any co-worker or any staff member or officer whether such act as called charge or not, and obstructing the work of co-worker, staff members or officers.

p)

Refusal to receive any order letter, charge sheet or instructions issued by his superior or the management or refusal to produce the identity card while in the Factory/Company premises when demanded by any person authorised by the management for the purpose.

q)

Leaving the machine/plant without being relieved by the reliever or till his substitute is arranged or handling any machine/plant not entrusted to his charge.

r)

Falsifying or refusing to give testimony when accident or other matters including domestic enquiry are being investigated.

s)

Engaging in private work or trade including money lending within the Factory/Company premises or engaging in other employment calling for profit while

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still under the services of the company without the written permission of the management. t)

Making false statement in the application for an appointment including nondisclosure of disease or diseases suffered or suffering and giving false information regarding one's age, father's name, permanent address, qualification or previous experience at the time of employment or thereafter.

u)

Proved inefficiency and services defect in workmanship.

v)

Repetition of any act or omission for which fine may be imposed under the payment of Wages Act or any other Act applicable to the establishment.

w)

Committing nuisance at the work premises.

x)

Over-staying or entering at the work premises while not being on duty, without reasonable cause and written permission or entry and or exit through the gates other than the one prescribed by the management.

y)

Acts of misconduct.

z)

Carrying unauthorised arms or lethal weapons in the factory premises or conduct within the Factory/Company/ which is likely to endanger the life or safety of any person or property of the Company.

aa)

Conviction in any court of law for any criminal offence involving moral turpitude.

bb)

Participation or instigations to any illegal strike.

bbb) Participation in or instigation to a strike without 14 days notice or a sit down or stayin-strike for refusal to work. bbbb)Slowing down in performance of work or inciting others to resort to deliberate "go slow" policy. cc)

Organising attending or holding meetings inside the premises of the company without the previous permission of the Management or except in accordance with the provisions of any law for the time being in force.

dd)

Gambling within the premises of the Company.

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ee)

Picketing and/or violent demonstrations or any other demonstrations except representations with the factory premises.

ff)

Impersonation.

gg)

Spreading false rumors or giving false information which may bring into dis- repute to the factory workman or spreading panic amongst the workman.

hh)

Collection of any money within the premises for purposes not sanctioned by the management.

ii)

Unauthorised use or forcible occupation of factory quarters, land or other properties belonging to the factory.

jj)

Refusal on the part of the workman to work on another job or on another machine or similar machine, other than job or machine on which he is usually employed, or refusal to work overtime as per provisions of law, including on Sunday/weekly offs' and other holidays when exigencies demand it.

kk)

Willful discourtesy to all persons connected with the affairs of the factory.

ll)

Failure to wear prescribed uniform, overall safety clothing and other equipment etc., while on duty.

mm) Deliberate abuse of any leave privileges or concessions or benefits for the time being in-force. nn)

Failure to observe safety instructions and indulging in acts which endanger the lives and safety to self or others or properties of the Company.

oo)

Refusal to take transfer order as per standing order No.20 supra or refusal to accept transfer from one shift to another or from one section to another or one establishment within the same management.

pp)

Not taking reasonable precautions to safeguard Company's properties and to prevent accident or damage to it.

qq)

Failure to report at once to his superior or foreman or manager regarding any defect which a workman may notice in any equipment connected into his work or material in process.

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rr)

Interfering with the record of attendance or means of recording attendance of himself any other workman or willful falsification defacement or destruction of records of the .Factory/Company.

ss)

Refusal to accept a charge sheet or order or other communication served in connection with the conditions of service in the interest of discipline.

tt)

Making false statement before a superior or forging the signature of the superior or controller in any record or register of the Factory/Company.

uu)

Willful and serious defect in workmanship.

vv)

Willful damage or sabotage to the machines, tools, equipment or material in the process belonging to the Factory/Company.

ww) Quarrelling or abusing or assaulting or threatening to assault any co worker or superior. xx)

23.

Instigate, incite or abetment or commitment of any act in furtherance of the above acts of misconduct. Workman found guilty of any of the misconducts mentioned in Standing Orders 22 is liable for punishment amounting to dismissal or discharge or suspension or removal. However, the management may at its discretion award one of the lesser punishments as mentioned below : a.

Warning or

b.

Censure or

c.

Fine, consistent with the provisions of the payment of Wages Act or any other Act applicable to the establishment. or

d.

Stoppage for a specific period not exceeding three years on increment either cumulative or without cumulative, if due under graded scale of pay whenever applicable; or

e.

Suspension for a period not exceeding 4 Days without wages.

f.

Reversion to the next lower grade.

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23.02

If any report or compliant, verbal or written, received by the Manager discloses on the face of it that the accusation made against a workman, constitute one or more acts or misconduct and entail disciplinary action the Manager shall order to hold an enquiry against the workman or workmen.

23.03

No order of punishment for misconduct shall be made except after holding an enquiry against workman concerned in respect of the alleged misconduct in the manner setforth below. However, no enquiry shall be necessary to administrator a warning or fine or in case where the concerned workman had admitted the charges, leveled against him.

23.04 (i)

A workman against whom an enquiry has to be held shall be given a charge sheet clearly setting forth the circumstances appearing against him and requiring explanation. (ii) The workman shall be given time not less than three days to file a written statement to the charge. (iii)While conducting an enquiry the following procedure shall be followed.

(a)

Workman shall be given notice of the date and time and venue of the enquiry.

(b)

The oral statement of the workman if any at the time of enquiry shall be reduced in writing.

(c)

The witnesses to prove the acts of omissions and commissions shall be examined in the presence of the workman and the workman shall be given an opportunity to cross examine the witness in the ordinary course. A workman shall be entitled to avail the assistance of co-worker to defend him in such enquiry.

(d)

The workman shall be given opportunity to defend himself and to examine witnesses, if any, on his behalf.

(e)

The proceedings of the enquiry shall be recorded in English or in Telugu whichever is preferred by the workman.

(f)

The proceedings of the enquiry shall be completed within a period of 45 days provided that the period of 45 days may, for reasons to be recorded in writing be

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extended by such further period as may be deemed necessary, by the Enquiry Officer. (g)

The report of the Enquiry Officer shall be furnished to the workmen.

(h)

In awarding punishment, the punishing authority shall take into account the gravity of the acts of omission and commissions, the previous record if any, of the workman and or any other extending or aggravating circumstances that may exist.

(i)

A copy of the final orders in a disciplinary case shall be supplied to the workman.

(j)

In case of his absence and/or refusal the order shall be sent to the workman by "Registered Post with acknowledgement due" to his last known address and in the case it shall be effective on the third day of posting.

24.01 SUSPENSION : Where a disciplinary proceeding against a workman is contemplated or is pending or where criminal proceedings against him in respect of any offence are under investigation or trail and the employer is satisfied that it is necessary or desirable to place the workman under suspension pending enquiry he may, by order in writing suspend him. Pending Enquiry, trial, investigation, final decision with effect from such date as maybe specified in the order. A statement setting out in detail the reasons for such suspension shall be sent to the workman within a week from the date of suspension. 24.02 SUBSISTENCE ALLOWANCE : A workman who is placed under suspension pending enquiry under clause (24.01) shall, during the period of such suspension, be paid a subsistence allowance at the following rates namely:(i)

Where the enquiry contemplated or pending is departmental, the subsistence allowance shall, for the first ninety days from the date of suspension be equal to 50% of pay, dearness allowances and other compensatory allowances, to which the workman would have been entitled if he was on duty.

(ii)

If the departmental enquiry gets prolonged and the workman continues to be under suspension for a period exceeding ninety days, the subsistence allowance shall for such period be equal to three fourths of such basic, wages, dearness allowance and other compensatory allowance provided that where such enquiry is prolonged beyond

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a period of ninety days for reasons directly attributable to the workman, the subsistence allowance shall, for the period not exceeding ninety days, be reduced to one fourth of such basic wages, dearness allowances and other compensatory allowances. 24.03 (i)

Where the enquiry is by an outside agency or the case may be, where criminal proceedings against the workman are under investigation or trial the subsistence allowance shall for the first one hundred and eighty days from the date of suspension be equal to one half of his basic wages, dearness allowance and other compensatory allowances to which the workman would have been entitled to if he were on leave. If such enquiry or criminal proceedings gets prolonged and the workman continued to be under suspension for period exceeding one hundred and eighty days, the subsistence allowance shall be for such period be against three-fourths of such wages; provided that where such enquiry or criminal proceedings is prolonged beyond a period of one hundred eighty days for reasons directly attributable to the workman, the subsistence allowance shall, for the period exceeding one hundred and eighty days, be reduced to one fourth of such wages.

(ii)

If on the conclusion of the enquiry or, as the case may be of the criminal proceedings, the workman has been found guilty or the charges framed against him and it is considered, after giving the workman concerned a reasonable opportunity of making representation on the penalty proposed, that an order of dismissal/discharge or suspension or fine or stoppage of annual increment or reduction in rank would meet the ends of justice the employer shall pass an order accordingly:

(a)

Provided that when an order of dismissal is passed under this clause, the workman shall be deemed to have been absent from duty during the period of suspension and shall not be entitled to any remuneration for such period, and the subsistence allowance already paid to him shall not be recovered:

(b)

Provided further that where the period between the date on which the workman was suspended from duty pending the enquiry or investigation or trial and the date on which an order of suspension was passed under this clause exceeds fifteen days, the workman shall be deemed to have been suspended only for fifteen days or for such shorter period as is specified in the said order of suspension and for the remaining

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period he shall be entitled to the same wages as he would have received if he had not been placed under suspension, after deducting the subsistence allowance paid to him for such period. (c)

Provided also that where an order imposing fine or stoppage of annual increment or reduction in rank is passed under this clause, the workman shall be deemed to have been on duty during the period of suspension and shall be entitled in the same wages as he would have received if he had not been placed under suspension, after deducting the subsistence allowance paid to him for such period.

(iii) If on the conclusion of the enquiry, or as the case may be, of the criminal proceedings, the workman has been found to be not guilty of any of the charges framed against him, he shall be deemed to have been on duty during the period of suspension and shall be entitled to the same wages as he would have received if he had not been placed under suspension after deducting the subsistence allowance paid to him for such period. (iv) The payment of subsistence allowance under this standing order shall be subject to the workman concerned not taking up any employment during the period of suspension and furnishing certificate to that effect. (v)

The authority suspending the workman may direct the person to be present at the appointed time and mark his attendance in the manner as directed.

(vi) When an order of dismissal has been passed and requires to be approved before it is implemented under the Industrial Disputes Act, the workman shall be eligible to draw 50% of his basic pay and dearness allowance and other compensatory allowance as subsistence allowance for the period under which he is kept under suspension automatically pending approval by the authority under the Industrial Disputes Act and when the punishment confirmed no recovery shall be made or if the punishment is revised he shall be paid full wages deducting the subsistence allowances already paid, if any, payment of subsistence allowance is subject to the individual not gainfully employed during the period for which he is paid subsistence allowance on his furnishing to that effect before drawing the allowance.

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24.04 SPECIAL PROCEDURE : If a workman has been convicted by the court of law for an offence involving moral turpitude, the employer may issue an order of dismissal or suspension or fine or stoppage of annual increment or reduction in rank after giving the workman concerned a reasonable opportunity of making a representation on the penalty proposed. 25.

Workman wishing to go on strike shall issue a notice to the management fourteen days in advance, mentioning clearly the reasons for such a strike

26.

DEDUCTION : Not withstanding to the disciplinary action the company may take under standing orders No.23, the Company will also be entitled to make the deductions as per the Payment of Wages Act, 1936.

27.

MEANS OF REDRESS FOR EMPLOYEES AGAINST UNFAIR TREATMENT OR THE WRONGFUL EXPLANATIONS BY THE EMPLOYER OR ITS AGENTS OR SERVANTS : All complaints arising out of his employment including those relating to unfair treatment or wrongful extractions on the part of Company or any of its agents or servants shall be submitted (except in the case of grievances relating to leave) by the employees to the Manager or such officers as he may appoint, the Manager, or such officer or officers shall personally investigate the complaint of the employee, and the action, if any taken shall be intimated to the Complaint.

28.

SERVICE CERTIFICATE & NO DUES CERTIFICATE: Every employee shall, on request be entitled to such Service Certificate on leaving the Company's Service.

29.

PASTING OF STANDING ORDERS ON NOTICE BOARD : A copy of Standing Orders in English and Telugu, shall be posted at the Main-gate of Factory and in such other place in the Factory premises, as the manager may decide and shall be kept in legible condition.

30.

If there is any conflict of meaning between these Standing Orders in their English version and in the Regional Language, the English Version of the Standing Orders, as certified by the certifying officer of the Appellate Authorities as the case may be deemed to be authentic.

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14. AN INDUSTRIAL UNREST ACTIVITIES & AGITATIONS 1. Background Industrial unrest is growing all over at an unprecedented scale on account of discontentment amongst workers. The demonstrations, ‘dharnas’, strikes, hunger strikes, sit in strikes, tool-down strikes, pen down strikes, picketing, gherao, go-slow, processions and ‘work-to-rule’ etc. have become the order of the day. The workers resort to the coercive measures in order to compel the employer to accept their demand without having recourse to the machinery provided for the law and in wanton disregard of it. Sometimes the workers even go to the extent of barricading themselves inside the establishment and succeed in even preventing the police and civil authorities from forcing their entry into the premises to rescue the top executives of the organization. The alarming feature of these conflicts is the violence that erupts in some of them. The most tragic is the situation when workers seize the establishment and management for days together. Sometimes the unrest amongst the workers leads to the proclamation of prohibitory orders and arrest of labour leaders for instigating and / or creating unrest amongst the workers. To some extent union rivalry is also responsible for industrial unrest amongst the workers. A strike may also happen for capturing position in trade union field. Yet another reason for the workers to go on strike is the lack of efforts on the part of an employer to satisfy them in regard to their long standing economic demands. This is because the workers cannot be expected to remain passive when prices rise to such an extent that their standard of living is lowered. What efforts should be made by an employer to remove the causes which drive the workers to resort to the dangerously coercive measures are discussed hereinafter.

DEMONSTRATION

HUNGER STRIKE

STRIKE

UNREST

GO-SLOW

PICKETING

GHERAO

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2. Demonstration A demonstration is visible manifestation of the feelings or sentiments of a individual or a group and is thus a communication of one’s ideas to others to whom it is intended to be conveyed. Though the employees have got the fundamental right to demonstrate, yet it is not necessary in the exercise of that right that the demonstration should be at the work place. In the first place, the work premises are owned by the employer and therefore, the employees have not right to use those premises for the purposes of their own. The property rights are themselves fundamental rights under the Indian Constitution. Secondly, any demonstration at the work place is likely to disturb the orderly working of the business of the employer. The commission of an act subversive of discipline or good behaviour on the premises of the establishment would refer to an act which creates disturbance such as shouting of slogans or carrying on trade union activities during office hours not permitted by the employer. The civil courts, when approached, grant injunctions against demonstration etc which are to be staged at particular distance from the place of work.

3. Hunger Strike It is resorted to instill sympathy into the heart of the employer and to attract other workers and the public in general. Hunger Strike is not generally looked upon as such heinous offence as to justify dismissal from service. In fact, hunger strike is resorted to exert moral force and when a worker starts ‘hunger strike’ or propagating indiscipline amongst the workers. So resorting to ‘hunger strike’ to redress any real or imaginary grievance cannot be described as an act of misconduct provided it is of a non-violent nature and is resorted to peacefully. The reason is that the industrial workers have fundamental right to resort to ‘hunger strike’, a means for enforcing their legitimate demands. When demands for securing improvement in conditions of service in matters such as wages, dearness allowance, gratuity etc., are made by the workmen and they are either ignored by the employer or their consideration is prolonged for an unduly long period, it is open to the workmen to resort to hunger strike for inducing the employer to agree to those demands or at least open negotiations in that behalf. Such a ‘hunger strike’ must, prima facie, be considered to be justified provided that it remains peaceful and the provisions of the Industrial Disputes Act, 1947 are not contravened. Resort to ‘hunger strike’ also does not offend the Criminal Law and no exception can be taken. In other words, by going on ‘hunger strike’ the workers do not commit any offence under the Criminal Law and it cannot also be described as an act of misconduct.

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Section 309 of the Indian Penal Code reads as under : Whoever attempts to commit suicide and does an ct towards the commission of such offence, shall be punished with simple imprisonment for a term which may extend to one year, and shall also be liable to fine ( or with both ). Therefore every striker will into incur the penalty under this section. When a person goes on hunger strike, a stage may reached at which death is certain unless prompt action is taken to prevent it by administering nourishment to that sinking person. If at such a critical stage the person still refuses nourishment it could be said that there is an attempt to commit suicide. Mere refusal to take food even for a short period would not amount to any conscious efforts to put an end to one’s life. It would merely be the stages of preparation after the stage of intention. Where the accused, a bidi worker on hunger strike, readily of her own accord, accepted nourishment in jail there was not attempt to commit suicide within the meaning of Section 309. The offence is cognizable and warrants are ordinarily issued in the first instance. It is bailable but not non-compoundable. The points requiring proof are : (i) (ii)

that the act in question was an attempt. that the attempt was by doing an act towards the commission of suicide.

3. Picketing ‘Picketing’ which imports an idea of obstruction, violence of intimation, is also an act of misconduct under in industrial law. ‘Picketing’ is an act of posting pickets and implies patrolling with signs, banners and placards for the purpose of excluding others from the place. In short, the meaning of the word ‘picketing’ is , ‘watching’ and dissuading those who want to go to work during a strike. ‘Boycott’ and ‘picketing’ are twin weapons of the same effect to disrupt the normal functioning of the enterprise. ‘Boycott’ is an appeal to all the voluntary withdrawal of co-operation and so, it is persuasive in nature. ‘Picketing’ on to other hand connotes necessary and adequate measures to disallow co-operation by others for the normal function and flow of business. Though the right to strike is not a fundamental right yet the free expression of view is a fundamental right. If a person has to express his view then the people must meet together. It is this basic idea which forms the basis of three freedoms guaranteed to citizens under Article 19(1) (a) (b) and (c) of the Constitution of India. In view of this, the peaceful picketing is always considered to be a protected activity and the employer is not entitled to take any disciplinary action against the employees simply for indulging in peaceful picketing. So, ‘picketing’ it being a qualified right must be free from intimidation,

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coercion, duress, fraud, threats and violence and must not be exercised in a way so as to affect the property rights of the employer. But the right of freedom of speech and expression does not entitle a person to incite others to commit offence. Without expressing any definite opinion whether peaceful picketing is unconstitutional, it was held that even if prohibition of some of the acts is unconstitutional, if does not follow that prohibition of other acts also is unconstitutional and it is possible to separate the valid part from the invalid part. 5. Gherao ‘Gherao’ is a physical blockade of a target, either by encirclement intended to block the egress and ingress from and to a particular office, or even residence or forcible occupation. The target may be a place or a person or persons, usually the managerial or supervisory staff of an establishment. The blockade may be complete r partial and is invariably accompanied by wrongful restraint, and / or wrongful confinement, and occasionally accompanied by assault, criminal trespass, mischief to person and property, unlawful assembly and various other criminal offences. 6. Go-slow ‘Go-slow’ means any thing less than normal work or output by a body of persons employed in any industry acting in combination, or a concerned refusal or a refusal under a common understanding of an number of persons who are or have been so employed to continue to carry out their work in a normal manner with normal energy. ‘Go-slow’ is a technical word which is used in describing the tactics of workers when they intentionally reduce the speed of the work or adopt dilatory tactics to reduce the production or efficiency while pretending to be engaged in the factory.

‘Go-slow’ is a serious misconduct ‘Go-slow’ which is insidious in its nature and cannot be countenanced, is picturesque description of deliberate delaying of production by workmen pretending to be engaged in the factory and is one of the most pernicious practices that discontented or disgruntled workmen sometimes resort to strike. The reason why ‘Go-slow’ is considered to be more serious is hat it is likely to be much more harmful to employers than the total cessation of work by strike. In view of the above, ‘Go-slow’ is regarded as very serious misconduct and it is held that the workers who resort to ‘Go-slow’ can be dismissed.

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7. Strike Strike is defined in Sec.2 (q) of the Industrial Disputes Act, 1947 as meaning a cessation of work by a body of persons employed in any industry acting in combination or a concerted refusal or refusal under a common understanding of any number of persons who are or have been so employed to continue to work or to accept employment. It can take various shapes, such as ‘pen down’ ‘sit down’ ‘sympathetic’ ‘token’ ‘hunger’ ‘lightning’ ‘relay’ ‘wild-cat’ and ‘mass causal leave’. Strike as such is not illegal but an illegal strike amounts to misconduct and calls for disciplinary action. Instigation and inciting illegal strike is also an act of misconduct. Strike in breach of Sec.22 and Sec.23 of ‘Industrial Disputes Act, 1947’ is illegal. Refusal to work for some time is also a strike, which is called a ‘lightning strike’ and is illegal when resorted to without notice in public utility service. “Sit-down” strike is defined and occurring whenever a group of employees or others interested in obtaining a certain objective in a particular business forcibly take over possession of property of such business, establish themselves within the establishment and refuse access to the owner or to others desiring to work. The strike in question cn be more accurately defined as a strike in the traditional sense to which is added the element of trespass of the strikers upon the property of the employer. All cases have uniformly outlawed the “Sit-down” strike. The act of striking workmen remaining in the work premises after working hours will amount to seizure and holding of the property practically depriving the employer of his property. Therefore the act of the workmen remaining on the work premises after the working hours will be unlawful and will also amount to trespass.

Precautions and steps to meet strikes etc. The Industrial Disputes Act, 1947 provides as to when a strike is illegal and it also prescribed the penalty for illegal strike as well as for its instigation, vide Sec.22,23,24,26 and 27. The penalty for giving financial aid to an illegal strike has also been prescribed in Sec.28 of the said Act. It is also generally provided in the standing orders of service rules that inciting or instigating others to take part or otherwise act in furtherance of a strike in contravention of the provisions of any law for the time being in force, on the part of an employee shall be an act of misconduct. If a worker is guilty of going on strike, it is necessary to examine whether the said strike is a misconduct, under the standing orders or service rules and if so, in what circumstances. When a strike is said to be misconduct, three questions generally crop up, The first is whether the strike is unjustified, the second is whether the strike is illegal and the third is whether the strike is a misconduct under the standing orders or the service rules. Even

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if there is no such provision, the illegal strike is looked upon with much disfavour by industrial adjudication and it constitutes misconduct in certain circumstances. The restriction on the power to strike has been imposed by section 22,23,24,26, and 27 as stated above. Besides this, it may also be considered whether and to what extent the strike was accompanied by intimidation, coercion or other violent activities which may themselves constitute misconduct. This shows that unlawful, disastrous, coercive or violent use of even a legitimate weapon, i.e. a strike, cannot be appreciated. In other words, the right to go on strike cannot give the right to go on strike in an illegal, illegitimate or unlawful manner without any justification, in the same was as the authority to hold a gun does not give the further authority to make misuse of it. Herein below are the precautions or steps to be taken to avoid a strike or to meet a strike if it has already commenced. (A) HOW TO AVOID STRIKE (i)

(ii)

(iii)

The first precaution to avoid a strike is to keep a close watch on the day-today activities of the active union workers. If a close watch is kept on the dayto-day trade union activities of the active trade union workers then to some extent at least a sudden strike without notice can be avoided. There are always some reasons for the workers to strike work and if the employer keeps himself acquainted or informed about the day-to-day activities of the trade union workers then there are very little chances for a strike to commence. The reason is that if an employer is aware about the activities of the workers, he can take necessary steps to persuade the workers to arrive at some amicable settlement or to explore the possibility of some settlement or to make them to agree to move the labour authorities for the redress of their grievances if otherwise they are genuine. Sometimes a strike commences because the disputes or difference involved are not given due attention and such type of non-co-operative attitude on the part of the employer makes the workers to go on strike. If proper attention is given at the appropriate time then there are chances to avert such strike. Sometimes demands for securing improvements in the conditions of service in matters such a wages, bonus, leave holidays etc. are made by the workmen or their union acting on their consideration is prolonged for an unduly long period, until the workers indulge in violence or until a crisis develops. The reason is that workers cannot be expected to remain passive when their standard of living is lowered on account of the rise is prices, the other reason for the workers to adopt coercive measures are the indecisive policies and action of the employer. It should, therefore, be understood that a strike may not happen on account of the default or lack of due and proper attention at the appropriate stage by the employer due to his indecisive policies or action. If, therefore all the aspects of the issue involved keeping in view of the possible consequences of non- settlement of the demands before the strike

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commences, are considered sympathetically then also there are chances of the strike being averted. It therefore follows that another necessary step to avert a strike is to examine carefully and make sure that every thing possible has been done. (B) HOW TO MEET A STRIKE (i)

(ii)

in spite of all this, a notice of strike is given by the workers or their union action on their behalf, then the first step to be taken is to examine thoroughly whether the strike is unjustified, the second is whether it is illegal and the third is whether it is a misconduct under the standing orders of the service rules or whether it is in violation of sections 22 and 23 of the Industrial Disputes Act, 1947 and if it is so then notices on the notice board of the factory or the establishment as well as to the union be posted bringing to the notice of the workers and the union the illegality and or unjustifiability of the strike and its consequences for the workers and they be called upon to desist from such illegal and / or unjustified strike. A copy of such notice should also be sent to the Labour department, Factories department, PF and ESI authorities, pointing out the illegality and / or unjustifiability of the strike and describing the circumstances which existed prior to the receipt of the notice of strike. A request should also be made to the labour authorities to intervene and to use their good offices in order to avert the strike, also request has to sent to ESI authorities not to entertain any ESI Leaves to the members of the organization to avoid sickness benefits etc. In the meantime the necessary arrangements for the safety of the factory / establishment, goods, machinery and other properties also be made. The utility service should be alerted. Yet another most important step is before commencement of the strike. The management should educate the workers about the consequences of an illegal strike in order to encourage them to exercise their influence on the workers by discouraging them to go on strike. All the concern HODs may also be utilized to avert the strike by virtue of their social relations and other means. An offer to open negotiations can also be made by informing the workers and the union that the doors o the management are still open for a dialogue and that no settlement is possible under pressure or preconditions. Some loyal and willing workers should also be taken into confidence in order to face or to avert a strike successfully. Police protection arrangement should be taken for the safe guard the factory machinery and some loyal and willing workers and also managers to avoid any assault on them by the striking workers. Any un to word incidents took places and evidence inthis behalf should be collected and the police authorities be kept informed about such violent activities of the workers. The workers who indulge in acts of indiscipline should be charge sheeted even during strike and their explanations be called. An injunction order may also enable the willing workers to attend their duties without any fear and would also prevent the damage being caused to the properties.

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(iii)

Another step which is required to be taken after the strike is over is that stern action must be taken against the persons who are found responsible for instigating the workers to go on strike and who indulge or instigate others to indulge in acts of violence, intimidation, coercion or acts subversive of discipline by launching criminal, civil, and departmental proceedings. The object should be, as far as possible, to curb lawlessness that is growing in ranks of labour.

(C) CHECK LIST TO MEET A STRIKE  To make sure that everything possible is done to avoid strike, without, of course, compromising the basic principles. Once a strike takes palace it is then a trial of strength and measures that would be reckoned unfair in normal times, should no longer be considered a such.  A team should be formed which has to face strike. It should consist of experienced Managers / Senior Staff / Senior Loyal Workers (Not participating in strike) and sympathetic to management and should be continuously in touch with each other and the management must inform them of any development.  Management should be duly posted with correct facts and policies changed in the light of intelligence reports. The sympathetic staff and officers should be taken into confidence regarding management’s decision.  Check legality of strike under Industrial Disputes Act and also whether it is in violation of the subsisting agreement.  Paste Notices on the Notice Board pointing out the illegality and unjustifiablility of the strike and justifying your actions. Advise strikers of the provisions of the Industrial Disputes Act. Valid agreements, and standing orders ( Certified) and the consequences of such strike. If necessary, at a later stage copies of the circular may be sent to individual workers’ residence. Such notices must be sent ot the union and labour authorities and other Government agencies. Such notice should be repeated and put on the notice board. Such notices my not have any impact but these have considerable value when evidence is produced before the court.  Security and Fire brigade of the factory / establishment should be tightened up.  Sufficient food / water arrangement should be preserved in the factory during the strike period.  Finished goods of the factory should be dispatched before the strike.  The important Telephone numbers should be available and also the means of communications with the outside world in case of emergency.  Close watch should be kept on instances of indiscipline. When en-masse cases or indiscipline are noted, a general notice should be pasted drawing attention to the grave consequences to such actions. Police force should be kept informed.

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 Charge-sheets to the offending workers should be sent by registered post as well as by courier service to the residential address of such workers.  The charge-sheet should be very carefully drafted and all the misconducts should be incorporated during the strike period and before.  A special request should be made to ESIC authorities so that striking workers do not get medical leave on wrong pretext.  The suppliers of raw materials should be notified before strike so that no supply is brought during the strike.  Inform to the concern insurance company with which the property in insured should be kept notified about the strike.  If criminal offences are committed by the workers either inside or outside the factory, reports should be made to the police in time and proper evidence should be obtained for future recordings.  If the strike continues for a considerable time and is accompanied by acts of indiscipline, the company my consider the desirability or declaring a LOCK OUT. Before lock out is declared, it has to be ensured that a very sound case has been build up by posting notices for the workers and keeping the Government authorities informed so that the question of payment wages during the lock out period does not arise.  Frequent meetings with members of the staff should be held and they should be encouraged to exercise their influence on the individual workers so that they understand the futility of the continuance of the strike.  During strikes, it is usual for the conciliation officer as appointed under the Industrial Disputes Act to call both the parties for negotiations. Care should be taken to see that these negotiations are not prolonged. Sometimes when the workers are weary of strike, the union leaders take up the excuse that the matter is under conciliation and it is in the interest of the workers to wait for sometime more and then the strike is prolonged. The best course is to accept what is reasonable and therefore, to insist if the unions do not accept the proposal, the conciliation may be deemed to be closed.  In case of Gherao, when the Government authorities fail to discharge their obligations under criminal procedure code and other existing law to intervene to protect the life and property of persons after repeated requests, High Court can be approached for issuance of a writ of mandamus and the court will direct the police authorities to intervene and safeguard fundamental rights of the persons concerned and also prevent Gherao. There are various other actions which may be taken as counter measures but the nature of actions will naturally depend upon the circumstances. However, the sense of ethics should not be thrown to the four winds with an attitude of vengeance because strike shall come to an end sooner or later and the same workers will be working together in the Factory / Establishment.

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