Unfair Labour Practices (ULPs) are statutorily defined acts by employers or workers/trade unions that undermine fair industrial relations. The IRC 2020 lists specific practices in the Second Schedule and provides penalties for commission. ULPs represent the legislature's judgment on what constitutes "unfair play" in industrial relations actions that poison the relationship even when they might be technically within legal rights.
Legal Framework
| Section (IRC 2020) | Subject | Key Rule |
|---|---|---|
| S.2(zj) | Definition | "Unfair labour practice" means any practice specified in the Second Schedule |
| S.83 | Prohibition | No employer or worker/trade union shall commit any unfair labour practice |
| S.84 | Penalty | Employer: imprisonment up to 6 months or fine up to Rs.2 lakh or both; Worker/Union: fine up to Rs.1 lakh |
| Second Schedule | Enumeration | Part I: Employer ULPs; Part II: Worker/Trade Union ULPs |
Unfair Labour Practices by Employers (Second Schedule, Part I)
| Category | Examples |
|---|---|
| Interference with union rights | Threatening workers to discourage union membership; granting benefits to non-union workers to undermine union |
| Domination of trade union | Supporting or financing a union to create employer-friendly "pocket union" |
| Discrimination for union activity | Discharging, dismissing, or prejudicing a worker for union membership or participation in legal strike |
| Victimization | Retaliating against worker who filed complaint or gave evidence in proceedings |
| Refusal to bargain collectively | Refusing to negotiate with recognized union in good faith |
| Closure/lockout threats | Threatening closure, lockout, or retrenchment to coerce workers against legitimate demands |
| Employing badli/casuals for years | Keeping workers as "temporary" or "contract" for years to avoid regularization obligations |
| Transferring as punishment | Transferring active union members to remote locations as retaliation |
Unfair Labour Practices by Workers/Trade Unions (Second Schedule, Part II)
| Category | Examples |
|---|---|
| Coercion of workers | Intimidating workers to join or not join a particular union |
| Picketing violence | Intimidation, violence, or obstruction during picketing |
| Wilful damage to property | Damaging employer's goods, machinery during strike |
| Go-slow | Deliberately reducing output while remaining at work |
| Illegal strike participation | Participating in or instigating illegal strike |
| Refusal to bargain | Refusing to participate in conciliation or negotiate in good faith |
| Coercing unrelated persons | Pressuring suppliers, customers to damage employer's business (beyond legitimate trade dispute) |
Penalty Structure
| Offender | Penalty |
|---|---|
| Employer | Imprisonment up to 6 months OR fine up to Rs.2,00,000 OR both |
| Worker/Trade Union | Fine up to Rs.1,00,000 |
Why: The penalty for employer ULPs is HIGHER (imprisonment possible) than for worker ULPs (fine only). This reflects the power asymmetry: employer ULPs (like victimization, union-busting) have more devastating consequences because of the employer's economic dominance. Worker ULPs, while serious, arise from a position of relative weakness.
Proving Unfair Labour Practices
| Element | Requirement |
|---|---|
| Specific practice | Must fall within enumerated list (Second Schedule) |
| Evidence | Proof of the act (circumstantial evidence sufficient for motive-based ULPs) |
| Proximity | Temporal connection (e.g., dismissal shortly after union formation suggests motive) |
| Pattern | History of similar acts strengthens inference |
| Burden | On the complainant (but shifts in some circumstances per judicial interpretation) |
Illustrations
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Employer ULP Union busting: Five workers at Metro Bakeries form a union and apply for registration. Within 10 days, all five receive "termination" letters citing "poor performance." All five have clean service records for 3+ years. No show-cause notice or domestic inquiry conducted. This is a textbook ULP: discrimination for union activity. The temporal proximity (formation → termination within 10 days) and pattern (ALL five union founders targeted) create an overwhelming inference of victimization.
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Employer ULP Contract labour misuse: National Hospital employs 40 nurses through a contractor for 8 years continuously. They do the same work as 30 permanent nurses, in the same shifts, under the same supervisor. But they get no PF, no ESI, no leave entitlement, no increment. Keeping workers as "contract" for years to avoid regularization obligations is a listed ULP. The Hospital is liable.
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Worker ULP Go-slow: Workers at Diamond Textiles, frustrated with management's refusal to negotiate, deliberately reduce output from 200 pieces/hour to 60 pieces/hour while remaining at work. This is a listed ULP under Part II: "go-slow." The workers receive full wages while causing deliberate production loss. Management can file a ULP complaint and take disciplinary action.
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Worker ULP Coercion: Union A members physically prevent workers from attending a meeting organized by rival Union B. They block the hall entrance and threaten "anyone who goes inside will face consequences at work." This is coercion of workers regarding union membership/activity a ULP by the trade union/members.
Recall Check
- Where are unfair labour practices enumerated in the IRC 2020?
- What is the penalty difference between employer ULPs and worker/union ULPs?
- Name three employer ULPs and three worker/union ULPs.
Key Cases
Hindustan Lever Ltd. v. Ashok Vishnu Kate (1995) Hindustan-Lever-v-Ashok-Vishnu-Kate-1995 Issue: Whether employing workers as "temporary" or "badli" for years while they perform duties of permanent workers constitutes an unfair labour practice. Rule: Employing workers as badli or temporary for years to avoid conferring permanency and its associated benefits (regularization, retrenchment protection, PF) is an unfair labour practice specified in Schedule. Held: Workers employed continuously for 240 days performing permanent nature duties must be regularized; prolonged temporary status is ULP; employer directed to regularize.
Distinctions
| Aspect | Employer ULPs | Worker/Trade Union ULPs |
|---|---|---|
| Listed in | Second Schedule, Part I | Second Schedule, Part II |
| Examples | Union busting, victimization, contract misuse, refusal to bargain | Violence, go-slow, illegal strike, coercion |
| Penalty | Imprisonment up to 6 months OR fine up to Rs.2 lakh OR both | Fine up to Rs.1 lakh only (no imprisonment) |
| Power context | Action from position of economic dominance | Action from position of collective strength |
| Typical motivation | Suppress worker organization; avoid legal obligations | Press demands through unfair means |
| Consequence for workers | Loss of employment, benefits, union rights | Fine; possible disciplinary action by union |
Flashcards
Q: Where are unfair labour practices enumerated in IRC 2020? A: In the Second Schedule. Part I lists employer ULPs; Part II lists worker/trade union ULPs.
Q: What is the penalty for employer ULPs? A: Imprisonment up to 6 months or fine up to Rs.2,00,000 or both (S.84).
Q: What is the penalty for worker/union ULPs? A: Fine up to Rs.1,00,000 (no imprisonment).
Q: Is employing workers as "temporary" for years to avoid regularization a ULP? A: Yes. Per Hindustan Lever v. Kate (1995) and the Second Schedule, prolonged temporary/contract status when workers perform permanent nature duties is an employer ULP.
Q: Name three common employer ULPs. A:
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(1) Threatening workers for joining a union
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(2) Discriminating against union members in promotions/benefits
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(3) Refusing to bargain collectively with recognized union.
Q: Is "go-slow" a ULP? A: Yes. Go-slow by workers is listed as an unfair labour practice under Second Schedule, Part II.
Exam Scenario
At Global Pharmaceuticals (500 workers), the following events occur within one month of the union filing a demand for bonus:
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(a) 3 active union office-bearers are transferred to a remote warehouse 200 km away
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(b) Management announces a "loyalty bonus" of Rs.10,000 exclusively for workers who are NOT union members
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(c) HR circulates an email stating: "Workers who withdraw from the union before March 31 will receive an additional increment."
Identify which (if any) of these actions constitute unfair labour practices. Cite the relevant category from the Second Schedule, Part I. What remedy can the union seek?