1. Introduction
Labour laws in India are designed to ensure a fair balance between the rights of workers and the powers of employers. However, in many situations, one side may misuse its position to exploit the other. To prevent such misuse, the concept of “Unfair Labour Practices” (ULP) was introduced in Indian labour law.
The Industrial Disputes Act, 1947 (ID Act) is one of the most important legislations in this regard. Originally, the Act did not define ULP, but later, through amendments, the definition and specific examples were included to protect both workers and employers from unfair treatment.
2. Legal Provision
The concept of Unfair Labour Practices is covered under Section 2(ra) of the Industrial Disputes Act, 1947. This section defines ULP as:
“Unfair labour practice” means any of the practices specified in the Fifth Schedule of the Act.
Additionally, Section 25T prohibits the commission of any unfair labour practice by employers, workers, or trade unions.
Section 25U makes it a punishable offence with imprisonment up to 6 months or a fine up to ₹1,000, or both.
3. Purpose of Defining Unfair Labour Practices
The main objectives behind defining and prohibiting ULP are:
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To ensure industrial peace and prevent disputes from escalating.
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To protect workers from exploitation by employers.
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To safeguard employers from unjustified demands or disruptive activities by workers or unions.
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To promote a fair and cooperative workplace.
4. The Fifth Schedule – List of Unfair Labour Practices
The Fifth Schedule of the Industrial Disputes Act lists practices that are considered unfair, divided into two main categories:
A. Unfair Labour Practices by Employers and Employers’ Trade Unions
Some examples include:
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Interfering with workers’ rights to form or join a trade union – e.g., threatening workers with dismissal if they join a union.
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Discriminating against workers for union activities – e.g., denying promotions or transfers to active union members.
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Discharging or dismissing workers by way of victimisation or for false reasons.
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Employing workers on temporary basis for years to avoid making them permanent.
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Refusing to bargain in good faith with a recognised trade union.
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Showing favouritism to certain workers regardless of merit.
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Transferring workers to inconvenient places as punishment for union activity.
B. Unfair Labour Practices by Workers and Trade Unions of Workers
Some examples include:
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Pressuring an employer through go-slow, illegal strikes, or coercion.
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Forcing other workers to join a union or participate in strikes against their will.
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Refusing to bargain in good faith with the employer.
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Indulging in acts of force or violence during demonstrations.
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Picketing in a way that physically prevents others from entering or leaving the workplace.
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Coercing workers into accepting union decisions without consent.
5. Significance of Prohibiting ULP
Prohibiting unfair labour practices is important because:
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It prevents exploitation and abuse of power.
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It creates trust between management and employees.
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It reduces industrial unrest and strikes.
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It supports economic growth by maintaining workplace stability.
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It ensures justice for both sides in labour disputes.
6. Remedies Against Unfair Labour Practices
When a worker or employer feels that an unfair labour practice has been committed, they can:
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File a complaint with the appropriate Labour Court or Industrial Tribunal.
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Seek reinstatement, back wages, or compensation if they have been wrongfully terminated.
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Request an injunction to stop ongoing unfair practices.
The Labour Court or Tribunal can:
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Order the employer or union to stop the unfair practice.
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Reinstate a worker with or without back wages.
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Impose penalties under Section 25U.
7. Case Laws on Unfair Labour Practices
Several court judgments have shaped the understanding of ULP in India. Some notable examples:
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Bharat Bank Ltd. v. Employees (1950) – The Supreme Court recognised the importance of collective bargaining and condemned victimisation of workers.
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Hindustan Lever Ltd. v. Ashok Vishnu Kate (1995) – The Court emphasised that temporary appointments should not be used to deny workers the benefits of permanent status.
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ONGC Ltd. v. Petroleum Coal Labour Union (2015) – The Court reiterated that both employers and unions can be guilty of ULP if they act in bad faith.
8. Conclusion
The prohibition of Unfair Labour Practices under the Industrial Disputes Act, 1947, is a key step in protecting industrial harmony in India. By clearly defining what is unfair and making it punishable, the law ensures that neither side can misuse their power.
In simple terms, ULP provisions are a shield for employees against exploitation and a sword for employers against unjustified disruptions. When both sides respect these rules, the workplace becomes a place of cooperation, productivity, and mutual respect.
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