Memorandum of Settlement under Section : 18 (1) of the Industrial Disputes act, 1947 entered into between the Management of and all the workmen represented by their Union

Ref.  No.:………………

Representing the Management	Representing the Union:	
1)………………. Director	1) …………….. President	
2) ……………… Works Manager	2) …………….. General Secretary	
	3) ……………. Tresurar	
	4) …………….	
	5) …………….	

SHORT RECITAL OF THE CASE

The President of …………… on behalf of workman represented to the Management vide their demand notice dated ………………certain such as enhancement of wages and several other benefits.  At the outset the management expressed that demands considering the low productivity, particularly in the context of present shortage of Raw Materials, high cost of production and the highly adverse economic trends in the establishment, they are not in a position to entertain any demands involving any additional financial burden on the company at this stage.  But the Union insisted that their demands be considered at least to some extent considering the high raise in the cost of living in the recent times and offered that the, workmen would be extending their full cooperation to the management in improving the productivity and economy in the establishment.  On the basis of this offer, the management agreed to negotiate with the Union on the charter of demands.  And as a result of the prolonged discussions held the positions reached a settlement as follows under Section ……. of the Industrial Disputes Act, 1947.

TERMS OF SETTLEMENT

01. All employees who will complete 240 working days will be considered as permanent employees.

02. Annual increment : Increment will be given @ Rs……./- for all the permanent employees. 

03. Uniforms : The management agrees to provide minimum two pairs of uniforms to all employees per year.

04. Shoe : The management agrees to provide two pairs of shoe to all  the employees per year.

05. Gratuity : It is agreed that the entitlement of gratuity of workmen shall be strictly inconformity with the provisions under the payment of Gratuity Act, 1972.

07. Leave entitlement : The management agreed to give leave for all the permanent workmen as follow :-

1. Casual Leaves			-	…… days per year
2. Sick Leave				-	…… days per year
3. Earned Leaves			-  	…… days per year	
4. Public Holidays			-	…… days per year

Leaving  the 4 National Holidays the remaining 8 public holidays will be decided by the Union and the management in the second week of December for the next calendar year.

08. Insurance Scheme : It is agreed to cover the permanent workmen under the Insurance Scheme Introduced by Life Insurance Corporation of India.  And the insurance of the workmen will be limited to Rs………./- (Rupees ……… only) and that the premium to be paid to the L.I.C. in this regards shall be borne by the management.

09. Overtime : The Management agreed to pay overtime as per the statutory provisions laid down in Factories Act.

10. Rest Room : The Management agreed to provide rest room in the establishment for workmen as per statutory regulations.

11. First Aid : Adequate arrangements have already been made for first aid as per statutory regulations.

12. Festival Advance : It is agreed that festival advance amount approximately equivalent to one month salary shall be given and to be deducted in 10 equal monthly installments to all the permanent employees.

13. It is hereby agreed to retrench all temporary employees who have not completed 180 days continuous service as on…………….

14. It is also hereby agreed to transfer all permanent employees who were on the muster records of…………………as on……………….. to………………

15.  Issue of Confirmation Letter : The management agreed that the permanent workmen employees on monthly wage based shall be issued with confirmation. The agreement shall be in operation from …………to……….. for a period of ……. years.  It is hereby agreed that during the period of the agreement, the workman shall not raise demands of any nature, whether involving financial implications or otherwise and shall maintain industrial peace and harmony at all times and shall not do any act which is likely to effect the discipline, production of the factory and the management shall not indulge in any unfair labour practices (such as victimization) during the operative periods of this settlement.  The remaining demands which are not covered by the agreement are hereby dropped.  In witness thereof, the above parties have signed on this (………) …………. At …………. in the presence of two witness mentioned below.

For the Management of	For the Union	
i.	i.	
ii.	ii.	
iii.	iii.	
iv.	iv.	

Witness:
1.
2.

Copy to Commissioner of Labour.