Chapter III WORKERS PARTICIPATION IN MANAGEMENT.

(1) The provisions of this chapter shall apply to every establishment in which fifty or more workmen are employed on any day of the proceeding twelve months. (2) The establishment to which the provisions of this chapter apply, shall continue to be governed by the provisions of this chapter notwithstanding that number of workmen employed therein falls below fifty.

(1) The management or its representative, duly authorised in this behalf, may nominate its representatives to the respective councils. (2) the representatives of the workmen shall be nominated by the recognised union: Provided that in the establishments specified in the First Schedule, the workmen’s representatives for the shop council and factory council shall be nominated by the recognised union at the unit level. (3) Where unions other than the recognised union possesses membership of not less than twenty percent of the total number of eligible voters, than the representatives of workmen to the shop, factory and enterprise council shall be nominated by the recognised union as well as such other minority union in proportion of their respective membership. Explanation:- (i) For the purpose of sub-section (3), the strength in the establishment shall be the basis for nomination to enterprise council. (ii) For nomination to factory council and shop councils, the strength in the establishment shall be the basis in respect of establishments other than those specified in the First Schedule. In respect of establishments specified in the First Schedule, the strength at the industrial unit level shall be the basis for nomination to factory councils and shop councils.

(1) The term of office of the members of the shop council, factory council and enterprise council shall be for a period of two years from the date of constitution of such council: Provided that the members of the council shall continue to hold the office till a new council is reconstituted. (2) A member of the council nominated to fill up a casual vacancy shall hold office for the remaining period of the term of office. (3) A member whose term of office is completed is eligible for renomination.

A member of the council after giving a notice of fifteen days to the Chairman, may resign his membership which shall take effect from the date of acceptance of the resignation or on the expiry of thirty days from the date of giving such notice.

If a member of a council fails to attend three consecutive meetings of the council, he shall cease to be a member of such council. However, the council may on the request made in writing by such member, by resolution restore his membership.

The Chairman or the Co-Chairman may tender his resignation by a letter addressed to the Co-Chairman or the Chairman as the case may be. Such resignation shall be considered in the council and the council may, by a resolution recorded for the purpose accept such resignation. The resignation tendered shall take effect from the date of such resolution or on expiry of thirty days from the date of tendering resignation, whichever is earlier.

During the casual vacancy in the office of Chairman or the Co-Chairman, it shall be filled by nomination of another person, who shall hold office for the residual period of the term at his predecessor.

(1) The Chairman shall hold the meetings of the council as frequency as he thinks necessary, so however, that atleast one meeting shall be held in every calendar month. (2) The Chairman shall fix the date, time and place of every meeting and shall send notice in writing along with the list of business to be transacted at the meeting to each member atleast three days before the date fixed for such meeting. (3) No business shall be transacted at any meeting of the council unless one-third of the total number of members are present and also unless atleast one member each representing the workmen and the employer is present. (4) The matters for shop councils, factory councils and enterprise councils shall be as provided under the Fifth Schedule to this Act. (5) The decisions shall be taken by majority of members present and voting. In the event of equality of votes, the Chairman shall have a casting vote. The decision so taken shall be recorded as resolutions of the council. (6) The proceedings of each meeting shall be confirmed in the next meeting with or without modifications, as may be considered necessary. (7) The management shall provide necessary facilities for holding the meetings of the council and shall treat the time spent by the members of the council in such meetings as on duty.

The resolutions of the enterprise council shall be placed before the Board of Directors by the Secretary or the Chief Executive of the Board. The Board of Directors shall discuss the same at its next meeting and take appropriate decisions.

(1) The authority appointed under sub-section (1) of section 23 is competent to specify, by an order in writing, the establishments wherein workers participation shall be introduced at the level of the Board of Directors. For this purpose, the authority shall determine the number of workmen Directors, which shall not be less than twenty-five percent of strength of the Board of Directors. (2) The representation of workmen in the Board shall be through direct election from among the eligible voters of the establishment. The workmen and the office-bearers of the unions operating in that establishment shall be eligible to contest elections. (3) The election specified under sub-section (2) shall be conducted by the election authority. The election shall be by secret ballot and in such manner as may be prescribed. (4) An appeal against the result of elections conducted under sub-section (3) shall lie, within such time as may be prescribed, to the Chief Election Authority or such other officer as he may, by general or special order, specify and whose decision thereon shall be final and binding.

(1) The provision of this chapter shall apply to every establishment in which hundred or more workmen are employed on any day of the preceding twelve months:

38. The Government shall, with effect from such date as may be notified, constitute a fund called the “Industrial Workers’ Contingency Fund”.

39. Every workmen of an establishment shall contribute every year to the fund such sum, as the Government may prescribe, which shall not be less than one percent of the minimum wages in force for the General Engineering Industry. Every employer shall, in respect of each such workman, contribute a sum equivalent to two times the workman’s contribution to the fund. It shall be the duty of the employer to remit in such manner, as may be prescribed, the employers contribution together with the contribution of the workmen to such authority as the Government may notify in this behalf.

40. Notwithstanding anything contained in any other law for the time being in force, the employer shall be entitled to deduct the Workman’s contribution from his wages in such manner, as may be prescribed and such deduction shall be deemed to be a deduction authorised by or under the Payment of Wages Act 1936.

41. Any sum payable to the Fund under this Act, shall, without prejudice to any other mode of recovery be recoverable as arrears of land revenue under the Telangana Revenue Recovery Act, 1864.

44. The allowance if any, payable to the non-official members of the Board and the conditions of nomination of the representations of the employers and employees shall be such as may be prescribed.

(1) No person shall be nominated or continued to be a member of the Board who,- (a) is an official, drawing salary from the Board; (b) is or has been adjudged at any time insolvent or has suspended payment of his debts or has compounded with his creditors; (c) is found to be of unsound mind; (d) is or has been convicted by a criminal court for an offence involving moral turpitude, unless such condition has been set aside; or (e) is in arrears of any sum due to the Board. (2) The Government may remove from office any member who,- (a) is or has become subject to any of the disqualifications mentioned in sub-section (1); or (b) is absent without leave of the Board for more than three consecutive meetings, of the Board: Provided that before taking action under this sub-section, the member concerned shall be given an opportunity to make a representation against the action proposed.

(1) A member may resign his office by giving notice of his intention thereof in writing to the Government; and on the acceptance of his resignation, he shall be deemed to have vacated his office as such member. (2) A casual vacancy in the office of a member shall be filled by nomination of another person from the concerned category and the member so nominated shall hold office for the residue period of the term of the office of his predecessor. (3) No act or proceeding of the Board shall be invalid merely on the ground of the existence of any vacancy, or any defect in the constitution or the Board.

47. Government may, from time to time, make grants and advance loans to the Board to the extent of the Fund available for the purposes of this Act, on such terms and conditions as the Government may, in each case, determine.

48. Subject to the provisions of this Act, the Fund shall vest in and be held and applied by the Board as trustees for the purposes of this Act.

49. Without prejudice to the generality of the provisions of section 48, the Fund shall be utilised by the Board, which may,- (a) grant to the affected workmen such sums as the Board may decide; and such sums shall not be less than the minimum wages in force for the General Engineering Industry; (b) contribute towards the share capital for the formation of an Industrial Workers Co-operative Society; (c) grant such other financial assistance to the Industrial Workers Co-operative Societies; or (d) take such measures as the Board may consider necessary for promoting the welfare of affected workmen.

50. Subject to the provisions of this Act, the Board may from time to time, with the previous sanction of the Government, and subject to such conditions as may be specified by the Government in this behalf, borrow sums required for the purpose of this Act.

51. The Government may from time to time, give to the Board such directions as in their opinion are necessary or expedient for incurring the expenditure from the fund or for carrying out the purposes of this Act and it shall be the duty of the Board to comply without fail all such directions.

(1) Government may, by notification, appoint such officers as they deem fit to maintain the list of affected workman. (2) It shall be lawful for the Government to direct the Employment Exchange to sponsor the names of affected to workmen on priority basis. (3) The Government may notify such other schemes as they consider necessary for providing assistance to the affected workmen.

(1) The accounts of the Board shall be audited by such persons as may be appointed by the Government and any expenditure incurred in connection with such audit shall be payable by the Board to the Government. (2) The person so appointed and any other person so authorized by him in connection with such audit of accounts of the Board shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers of the Board. (3) The accounts of the Board certified by the person so appointed or any other person authorised in this behalf together with the audit report thereon shall be forwarded annually to the Government.

54. Nothing in this Act shall apply to,- (a) the Indian Red Cross Society, or to any other such institutions of a like nature; (b) Universities and other Educational Institutions; (c) Religious and Charitable Institutions; and (d) such other industrial establishments as the Government may by notification specify for purposes of all or any of the provision of this Act.

55. The Government may by notification, appoint such persons as they think fit to be Inspector’s for the purpose of this Act and may specify the limit within which they shall exercise jurisdiction.

56. An Inspector appointed under section 55 for the purpose of ascertaining whether any of the provisions of this Act have been violated, may,- (a) require an employer or union to furnish such information as he may consider necessary; (b) at any reasonable time and with such assistance as he may consider necessary enter the place of any industrial establishment a unit, or any premises connected therewith and require any person found to be in charge thereof to produce, before him for examination of any accounts, books registers and other documents relating to the employment of workmen or the payment of wages in such establishment; (c) examine the employer, his agent, or servant or any other person found incharge of the industry or any premises connected therewith, or any person whom the Inspector has reason to believe to be or to have been a workmen in such establishment in discharging his duties; (d) make copies of, or take extracts from, any book, register or other document maintained in relation to such establishments;

Any person required to produce any book, register, or other document or to give information by an inspector under section 56 shall comply with such requirement.

Every employer shall prepare and maintain such registers, records and other documents in such form and in such manner as may be prescribed.

The State Government may, if it is of the opinion that it is expedient or necessary in public interest, so to do by notification in the Official Gazette, add to or alter or amend the Schedule and on any such notification being issued, the Schedule shall be deemed to have been amended accordingly.

Save as otherwise expressly provided in this Act, the provisions of this Act shall be in addition to and not in derogation of any other law for the time being in force relating to any establishment.

No order passed or proceedings taken under the provisions of this Act shall be called in question in any Court, in any suit, or application; and no injunction shall be granted by any Court in respect of any action taken or about to be taken in pursuance of any power conferred by or under this Act.

All officers acting under this Act shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code.

No suit, prosecution or other legal proceeding shall lie against any person for anything which is in good faith done or intended to be done in pursuance of this Act or any rule made thereunder.

Whoever contravenes any of the provisions of this Act shall be punishable with a fine of five hundred rupees or more which may extend to five thousand rupees or with imprisonment for a term which may extend to six months, or with both.

No court shall take cognizance of any offence punishable under this Act, save on a complaint made by or under the authority of the Government.

No Court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the First Class shall try any offence punishable under this Act.

If any difficulty arises in giving effect to the provisions of this Act, the Government may by notification in the Telangana Gazette, do anything not inconsistent with such provisions which appears to them to be expedient or necessary for the purpose of removing the difficulty.

The Government may, from time to time, review the implementation of the provisions of this Act, in such manner, as they deem fit, and for this purpose they may constitute a Committee consisting of such persons as they consider necessary.