Unfair Labour Practice is any act or omission by an employer, trade union, or workman that is specified in the Fifth Schedule to the Industrial Disputes Act, 1947 and constitutes a prohibited practice in the context of industrial relations. Under Indian law, it is defined in Section 2(ra) of the Industrial Disputes Act, 1947, and the commission of such practices is punishable with imprisonment or fine under Section 25U.
Legal definition
The Industrial Disputes Act, 1947 provides a statutory definition:
Section 2(ra): "Unfair labour practice" means any of the practices specified in the Fifth Schedule.
The Fifth Schedule is divided into two parts. Part I enumerates unfair labour practices on the part of employers and their trade unions, while Part II enumerates unfair labour practices on the part of workmen and their trade unions.
Key employer-side unfair labour practices (Part I) include:
- Interfering with, restraining, or coercing workmen in the exercise of their right to organise, form, or join trade unions
- Refusing to bargain collectively in good faith with recognised trade unions
- Discriminating against workmen for trade union activities in matters of promotion, tenure, or conditions of service
- Recruiting workmen during a legal strike to replace strikers
- Discharging or dismissing workmen for participating in lawful strikes
- Abolishing the work of a regular nature and engaging contract labour for the same work
Key workmen-side unfair labour practices (Part II) include:
- Advising or actively supporting an illegal strike
- Coercing workmen to join or not join a trade union
- Engaging in go-slow tactics
- Staging demonstrations at the premises of the employer
New law equivalent: The Industrial Relations Code, 2020 defines unfair labour practices under Section 2(zc) and lists the prohibited practices in the Second Schedule, substantially carrying forward the Fifth Schedule of the 1947 Act.
How courts have interpreted this term
Steel Authority of India Ltd. v. National Union Waterfront Workers [(2001) 7 SCC 1]
In this five-judge bench decision, the Supreme Court examined the practice of replacing regular workmen with contract labour — Item 10 of Part I of the Fifth Schedule. The Court held that the engagement of contract labour for work that was previously performed by regular workmen, with the effect of reducing the regular workforce, constitutes an unfair labour practice. The Court also clarified the interplay between the Contract Labour (Regulation and Abolition) Act, 1970 and the Industrial Disputes Act, holding that abolition of contract labour under the 1970 Act does not automatically result in absorption of contract labourers by the principal employer.
Indian Drugs and Pharmaceuticals Ltd. v. Workmen [(2007) 1 SCC 408]
The Supreme Court held that the transfer of a workman motivated by trade union victimisation constitutes an unfair labour practice under Part I of the Fifth Schedule. The Court examined the employer's stated reasons for the transfer and found them to be pretextual, designed to penalise the workman for active participation in union activities.
Bhilai Steel Plant v. Bhilai Ispat Karamchari Sangh [2009 (3) MPLJ 493]
The Court applied the principle that an employer's refusal to recognise or negotiate with a majority trade union, without reasonable grounds, constitutes an unfair labour practice. The obligation to bargain collectively in good faith is a cornerstone of the statutory framework.
Why this matters
The prohibition of unfair labour practices serves as the enforcement mechanism for the fundamental principles of industrial democracy — the right to organise, the right to bargain collectively, and protection against victimisation. Without these prohibitions, the substantive rights guaranteed by the Industrial Disputes Act and the Trade Unions Act would be rendered ineffective.
For employers, the scope of unfair labour practices is broader than commonly understood. Practices such as employing badli workers, casuals, or temporaries to perform work of a permanent nature, or transferring workmen motivated by anti-union animus, or failing to implement awards, settlements, or agreements, are all enumerated unfair labour practices. The punitive consequences are significant: Section 25U prescribes imprisonment up to six months, or a fine up to Rs 1,000, or both, for committing an unfair labour practice.
For trade unions and workmen, the Fifth Schedule provides reciprocal obligations. Workmen engaging in go-slow tactics, staging illegal strikes, or intimidating fellow workers who do not wish to join a strike are also guilty of unfair labour practices. This two-sided framework reflects the legislative intent to ensure discipline and fairness on both sides of the industrial relationship.
In practice, complaints of unfair labour practices are adjudicated by labour courts under Section 25T. The standard of proof is a preponderance of probabilities, and the burden lies on the complainant to establish the specific practice enumerated in the Fifth Schedule.
Related terms
Broader concepts:
Related practices:
Related procedures:
Frequently asked questions
Who can file a complaint for unfair labour practice?
Under Section 25T of the Industrial Disputes Act, a complaint for unfair labour practice can be made by a trade union, an individual workman, or an employer, depending on which side has committed the practice. The complaint is filed before the labour court having jurisdiction, and the court may order the respondent to cease and desist from the unfair labour practice and take specified remedial action.
Is employing contract labour an unfair labour practice?
Employing contract labour per se is not an unfair labour practice. However, abolishing existing regular work and engaging contract labour or casuals to perform the same work in order to deprive regular workmen of their employment is an unfair labour practice under Item 10 of Part I of the Fifth Schedule. The Supreme Court in SAIL v. National Union Waterfront Workers (2001) clarified this distinction.
What is the penalty for committing an unfair labour practice?
Under Section 25U of the Industrial Disputes Act, any person who commits an unfair labour practice is punishable with imprisonment for a term which may extend to six months, or a fine which may extend to Rs 1,000, or both. In addition, the labour court can issue orders directing the offending party to cease the unfair practice and take corrective steps, including reinstatement of victimised workmen.
Can a go-slow by workmen be treated as an unfair labour practice?
Yes. Item 3 of Part II of the Fifth Schedule expressly lists "go-slow" as an unfair labour practice on the part of workmen and their trade unions. A go-slow is a deliberate reduction in the pace of work without formally ceasing work, and courts have consistently treated it as more insidious than a strike because it inflicts economic harm on the employer without giving the employer the clear remedy that a formal strike would provide.
This entry is part of the Veritect Indian Legal Glossary, a comprehensive reference of Indian legal terminology grounded in statutory text and judicial interpretation.
Last updated: 2026-03-27. Veritect provides this content for informational purposes and does not constitute legal advice.