Section 91: Penalty for unfair labour practices

The Industrial Relations Code, 2020 (Act No. 35 of 2020) • Official Statutory Text & Plain English Practice Guide

Statutory Mandate
Chapter XIII: Offences and Penalties
Competent Labour Forum
Act No. 35 of 2020

Legal Commentary & Landmark Judgments: Section 91

Section 91 of the Industrial Relations Code, 2020 provides an immediate statutory cause of action and direct adjudicatory remedy to an aggrieved worker whose service conditions were altered or who was dismissed in contravention of Section 90, treating the worker's complaint as an industrial dispute referred to the Tribunal.

  • Direct Worker Cause of Action for Section 90 Breach: Where an employer contravenes the provisions of Section 90 during the pendency of proceedings, any worker aggrieved by such contravention may make a complaint in writing to the conciliation officer, arbitrator, or Industrial Tribunal before which the main proceeding is pending.
  • Deemed Reference Architecture: Upon receipt of the complaint, the arbitrator or Tribunal is statutorily mandated to adjudicate upon the complaint as if it were an industrial dispute referred to or pending before it, granting the worker direct access to adjudication without requiring a formal government reference.
  • Dual-Stage Adjudicatory Jurisdiction: The Tribunal first inquires whether the employer contravened Section 90 (e.g., failure to pay one month's wages or file simultaneous approval); if contravention is established, the Tribunal proceeds to examine the substantive merits of the punishment, possessing full power to order reinstatement with back wages or modify penalties.
Key Landmark Precedents:
  • Kamani Tubes Ltd. v. Kamani Employees Union (1987) 4 SCC 701: The Supreme Court held that under Section 33A of the IDA (now Section 91), the tribunal has complete jurisdiction to grant final substantive relief, including reinstatement with full back wages, if the employer violated the statutory freeze during pendency of proceedings.
  • Punjab National Bank Ltd. v. All India Punjab National Bank Employees' Federation AIR 1960 SC 160: Held that a complaint under Section 33A is to be adjudicated as if it were a regular reference under Section 10; the tribunal must decide both whether Section 33 was breached and whether the dismissal was justified on the evidence.
  • Bhavnagar Municipality v. Alibhai Karimbhai (1977) 2 SCC 350: The Supreme Court reaffirmed that altering service conditions or retrenching daily-rated workers during pendency of an adjudication without tribunal permission empowers the tribunal under Section 33A to set aside the termination.
Courtroom Practice & Strategic Litigation Guidance:

In drafting a complaint under Section 91, plead: (1) the exact case number and forum where the primary dispute is pending; (2) the date of commencement of proceedings; (3) the applicant's nexus as a worker connected with the dispute; and (4) the specific failure of the employer to obtain prior permission or file simultaneous approval. In defense, management must establish that the domestic enquiry was conducted fairly, and explicitly reserve the right in the written statement to lead fresh evidence before the Tribunal on the merits of misconduct.