Employee Relations Notes
Subject Overview
The second HRM group elective, covering industrial relations theory and trade unionism, dispute settlement machinery and key labour acts, social security legislation, and labour welfare concepts and administering agencies. A 4-credit elective theory paper.
Subject at a glance
4
Units
24
Topics
4
Credits
4
Infographics
Unit-wise Syllabus
4 units — open any unit for detailed topic-wise notes, diagrams and important exam questions
- IR concept
- theories and evolution
- system approach to IR
- trade unionism and impact on wages
- Trade Unions Act 1926
- Factories Act 1947
Actors
Managers, workers and unions, government
Contexts
Technology, markets, power
Ideology
Shared beliefs that bind the system
Rules
Output: pay, hours, procedures
Study guide
This unit covers the concept and theories of industrial relations, the systems approach, trade unionism, the Trade Unions Act 1926 and the Factories Act 1947. Know the unitary, pluralist and Marxist views.
- Anatomy of industrial disputes
- dispute settlement machinery — conciliation
- adjudication
- arbitration
- sexual harassment
- Industrial Disputes Act 1947 provisions on lay-off/termination/retrenchment/closure/VRS
Lay-off
Temporary inability to give work
Continues; compensation paid
Retrenchment
Termination of surplus staff
Ends; notice and compensation
Closure
Permanent shutdown
Ends for all
Study guide
You study the anatomy of disputes, the settlement machinery (conciliation, adjudication, arbitration), sexual harassment and the Industrial Disputes Act on layoff, retrenchment, closure and VRS. Several of these laws are now consolidated in the labour codes from November 2025, so confirm which law your exam follows.
- Social assistance and social insurance concepts
- Payment of Wages Act 1936
- Payment of Bonus Act 1965
- Workmen's Compensation Act 1923
- Payment of Gratuity Act 1982
Payment of Gratuity Act 1972
15 days' wages per year of service, after 5 years
Employer
Payment of Bonus Act 1965
Minimum 8.33% of wages
Employer
Employees' Compensation Act 1923
Compensation for work injury
Employer
EPF Act 1952
Retirement savings, pension
Employer and employee
Study guide
You study social assistance and insurance and the Acts on wages, bonus, workmen's compensation and gratuity. Prepare a table of each Act and its coverage.
- Maternity Benefit Act 1961
- ESI Act 1948
- Provident Fund and Miscellaneous Provisions Act 1951
- ILO and social security
- concept/scope/objectives of labour welfare
- classification of welfare work
- agencies for administering labour welfare laws in India
Statutory
Required by law: canteens, crèches, safety
Voluntary
Employer's own: housing, education
Mutual
Run by workers themselves
Social insurance
ESI, maternity benefit
Study guide
You study maternity benefit, ESI, provident fund, the ILO, labour welfare and the agencies administering labour laws. Learn the benefits each Act provides.
Why Employee Relations Matters
Employee relations and labour law knowledge supports HR and compliance roles and avoids costly disputes.
How to Prepare for Employee Relations
- Make a one-page table of key labour Acts.
- Read about the new labour codes.
- Study a real industrial dispute case.
Employee Relations: Frequently Asked Questions
What is VRS?
Voluntary retirement scheme lets employees leave a company early with compensation, often used to reduce workforce.