Employees can raise an industrial dispute when they find that the employer is not complying with the clauses of Standing Orders or has violated the employment contract or has not complied with the provisions of the Industrial Disputes Act of 1947. The authorities for investigation and settlement of disputes under the Act are:

Strike is a collective tool in the hands of employees which can be exercised under various circumstances (eg if they find that the provisions of the employment contract are not being observed or there has been variation of terms of contract). A strike means suspension or cessation of work by a group of employees employed in industry, acting in combination. Partial stoppage of work, hunger strike accompanied with cessation of work, pen-down strike and sitting in strike are also held to be strikes. However, the strike should be legal and justified and must conform to the requirements laid down under the Act. Unnecessary suspension of work will lead to disciplinary action and the employer can take action against such employees.

Trade unions are a major component of the modern industrial relations system. A trade union of workers is an organisation formed by workers to protect their interests and to improve their working conditions. When an employer varies the terms of the employment contract or does not observe its provisions, employees can collectively through their union exert pressure on the employer to comply with the terms of the contract. See more detail in Industrial Relations section at IND 90-001 .

The employees can collectively resort to mass leave. This may compel the employer to observe the provisions of the employment contract.

If an employee has suffered a loss due to the employer’s non-observance of the terms of employment contract, he/she can claim compensation under the Indian Contract Act of 1872 in the same manner that the employer can. If a worker has been dismissed or retrenched, he/she can claim retrenchment compensation or any other compensation for the time being to which he/she is entitled.

An employee whose services have been terminated, with or without assigning any reason, is entitled to all legal dues from the employer. If the employer fails to pay the amount due, the worker can go to the Labour Court or the Civil Court for recovery of the same. Drafting of employment contracts

There are three methods in which to form a contract of employment:

By express written agreements. Normally used in Government, Semi-Government, autonomous institutions, Statutory bodies and private establishments.

By express oral agreements. Normally used by small traders, in small shops and establishments run by private persons, agricultural labourers and in employing casual labour.

By conduct of the parties. Rarely used but used sometimes in domestic service, agriculture labour and sometimes by small traders and shopkeepers.

It is advisable to have the contract of employment in writing. While drafting an agreement, the following aspects are to be carefully considered.

Figures with regard to dates and amounts are generally written in words or both.

It is a cardinal rule of construction of deeds that the intention of the parties has to be gathered by reading the documents as a whole and by giving effect to all the words used within them. It should correctly and without any ambiguity bring out the intention of the parties.

While drafting a deed, requirements of relevant statutes should be borne in mind. A document or transaction which is ab initio void has no existence in the eyes of the law. Therefore agreements which are against public policy will be invalid and illegal.

A contract usually starts by specifying the names and the nature of the documents, eg “THIS DEED OF EMPLOYMENT” and “THIS AGREEMENT OF SERVICE”.

The names of the place where the document is executed should be specified. Similarly the date of the deed should be written in words.

The names and descriptions such as parentage, domicile, occupation, residential and permanent addresses of the parties, if necessary to the deed, should be given.

For the purpose of brevity of writing and for long description of parties, their abbreviations are given eg AB (here after referred to as “employer”).

After the recital comes the operative part, commencing with the testatum (witnessing clause) like “NOW THIS DEED WITNESSETH as follows”.