To preserve industrial peace, bad-faith acts committed by either employers or trade unions are strictly penalized under the Act.
1. Unfair Labour Practices (Sections 25-T & 25-U)
Under Section 25-T, no employer, workman, or trade union shall commit any Unfair Labour Practice as defined in the Fifth Schedule.
- Key Employer Infractions: Interfering with workers forming unions, creating employer-dominated unions, victimizing employees for union activities, and employing workers as "badlis" or casuals for years to deprive them of permanent benefits.
- Key Union Infractions: Coercing workers to join a union, staging illegal go-slow strikes, or participating in violent gheraos or picketing.
- Penalty (Section 25-U): Punishable with imprisonment up to six months or fine up to Rs. 1,000, or both.
2. Second National Commission on Labour (2002)
Formulated to recommend structural modifications for globalization, proposing the consolidation of India's fragmented labour laws into five simplified codes, establishing the foundation for modern labour reforms.