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The Industrial Disputes Act, 1947

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The act is applicable in all states of India- to all

industrial and commercial establishments, employing

Technical and Non Technical workmen, drawing

Rs.1600 per month.

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To ensure social justice to both the employer and theemployee and advance progress of the industry by bringingabout harmony and cordial relationship.

To settle disputes arising between the capital and labour bypeaceful methods and through the machinery of conciliation,arbitration and if necessary by approaching the tribunals.

To promote measures for securing and preserving amity andgood relations between the employer and the workmen.

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To prevent illegal strikes and lockouts.

To provide compensation to workers in case of lay-offs,retrenchment and closure.

To protect workmen against victimization by the employerand to ensure termination in a peaceful manner.

To promote collective bargaining.

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Means,

i) in relation to any industrial dispute concerning anyindustry carried on by or under the authority of theCentral Government, or by a railway company, orconcerning any such controlled industry such as may be

specified or in relation to an industrial disputeconcerning a banking or an insurance company, a mine,or an oil field, or a major port , the Central Government,and

ii) In relation to any other industrial dispute the, StateGovernment.

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Any railway service or any transport service for thecarriage of passengers or goods by air or road.

Any section of an industrial establishment on theworking of which the safety of the establishment or the

workman employed therein depends.

Any postal, telegraph or telephone service.

Any industry which supplies power, light or water to thepublic.

Any system of public conservancy or sanitation.

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Any industry specified in the first schedule which theappropriate government may if satisfied that public

emergency or public interest so requires, by notification

in the official gazette, declare to be a public utility servicefor a specified period not exceeding six months in the

first instance.

It may be extended from time to time by the appropriate

government if it deems such extension necessary.

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Industry means,

Any business, trade, undertaking, manufacture or calling of

employers and includes any calling , service, employment,

handicraft or industrial occupation or vocation of workmen.

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Industry means,

Any systematic activity carried on by co-operation between

an employer and his workmen (whether such workmen are

employed by such employer directly or by or through any

agency, including a contractor) for the production, supply

or distribution of goods or services with a view to satisfy

human wants or wishes.

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means any dispute or difference between employers and

employers or between employers and workmen, or between

workmen and workmen, which is connected with the

employment or non-employment or the terms of

employment or with the conditions of labour, of any person.

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The definition is in three parts,

First part refers to the factum of a real and substantialdispute,

Second part to the parties to the dispute,

Third part to the subject matter of the dispute.

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means any person (including an apprentice) employed in

any industry to do any manual, unskilled, skilled, technical,operational, clerical or supervisory work for hire or reward,whether the terms of employment be express or implied,and for the purposes of any proceeding under this Act in

relation to an industrial dispute, includes any such personwho has been dismissed, discharged or retrenched inconnection with, or as a consequence of, that dispute orwhose dismissal, discharge, or retrenchment has led to thatdispute.

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Setting up of works committee in establishments employing

100 or more workers with equal number of representativesor workers and management for endeavouring to composeany difference of opinion in matters of common interest andthereby promote measure for securing and preserving amity

and cordial relation between the employer and workmen.

The decision of the works committee carries weight but isnot conclusive and binding.

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Prohibition of changes in the conditions of services in respect

of matters laid down in the fourth schedule of the act

Without giving notice to the workman affected by suchchanges

Within 21 days of giving such notice.

No prior notice is required in case of

Changes affected as a result of any award or settlement

Employees governed by government rules and regulations

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Prohibition of strikes and lockouts in public utility services

Without giving notice to other party within six weeksbefore striking or locking out.

Within fourteen days of giving such notice.

Before the expiry of date of strike or lock out specified inthe notice and during the pendency of any conciliationproceeding s before the conciliation officer and seven daysafter the conclusion of such proceedings.

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Section 25T and 25U prohibit employers , employees andunion from committing unfair labour practices mentionedin the schedule V of the act .

Committing such an act is punishable with imprisonment of

up to six months and fine up to Rs.1000 or both

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Requiring employers to obtain prior permission of the

authorities concerned before whom disputes are pending

for conciliation, arbitration and adjudication, for change of

working and employment conditions or for dismissal or

discharging employees and their union leaders (sec 33).

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Pay lay off compensation to employees(in establishmentemploying more than 50 employees) for a period that they

are laid off at the rate of 50 % of the salary they would have

paid other wise.

Give one months notice and three months notice in case ofestablishments employing 100 or more persons or pay inlieu of notice and also pay compensation at the rate of 15 days

wages for every completed year of service for retrenchmentand closing establishments.

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Retrench employees on the basis of first come last go

Obtain permission from the Government for retrenchment,laying off employees and closing of establishments employing

100 or more persons.

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The central and the state government are empowered underthe industrial dispute act to appoint such number of

Conciliation officer for a specified area or for specified

industries in a specified area or for one or more specified

industries and either permanently or for a limited period.

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Conciliation officer is not a judicial officer,

To enable him to do his duties he is empowered to enter thepremises occupied by any establishment to which the disputerelates after giving reasonable notice for inspecting the same

or any of its machinery, appliances or articles.

He can interrogate any person there in respect of anythingsituated therein or any matter relevant to the subject matterof conciliation.

He is empowered to enforce the attendance of any person forthe purpose of examination of such persons.

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He can call for any documents which he has ground forconsidering relevant in the dispute.

The conciliation officer shall have the same powers as arevested in the Civil court under the Code of civil procedure.

He is also deemed to be a public servant within the meaning

of sec.21 of IPC.

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The appropriate Government may as occasion arises by

notification in the Official Gazette constitute a Board ofConciliation for promoting the settlement of an industrialdispute.

A Board shall consist of a chairman and two or four othermembers, as the appropriate Government thinks fit.

The chairman shall be an independent person.

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The other members shall be persons appointed in equalnumbers to represent the parties to the dispute and anyperson appointed to represent a party shall be appointed onthe recommendation of that party.

If any party fails to make a recommendation as aforesaidwithin the prescribed time, the appropriate Government shallappoint such persons as it thinks fit to represent that party.

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The board of conciliation has the powers of the civil court for

Enforcing the attendance of any person and examining onoath.

Compelling the production of document and materialobjects.

Issuing commission for the examination of witnesses.

The enquiry or investigation by the board is regarded asjudicial proceedings.

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Where a dispute exists it can be referred for arbitration, if the

parties to the dispute agree to do so by submitting a writtenagreement

mentioning a person acceptable to them as an arbitrator

Issues to be decided in arbitration proceedings, should bebrought to the notice of the government and the conciliationofficer concerned, before it is referred for adjudication.

Where an agreement provides for even number of arbitrators,it will provide for another person as an umpire.

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The appropriate Government shall within one month fromthe date of the receipt of the copy of the arbitrationagreement publish the same in the Official Gazette.

When an industrial dispute has been referred for arbitration,the Government may, by order, prohibit the continuance ofany strike or lock-out in connection with such dispute whichmay be in existence on the date of reference.

Arbitrator is a quasi-judicial body. He is an independentperson and has all the attributes of a statutory arbitrator.

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The appropriate Government may, by notification in the

Official Gazette, constitute one or more Labour Courts.

The labour courts consists of one person only, called thepresiding officer of a Labour Court, who is, or has been,

a Judge of a High Court;

or he has for a period of not less than three years, been aDistrict Judge or an Additional District Judge;

or he has held any judicial office in India for not less thanseven years.

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This also is a one man body.

The third schedule of the act mentions matters of industrialdispute which can be referred to it for adjudication.

This schedule shows that the industrial tribunal has widerjurisdiction than the labour court.

The government may appoint two assessors to advise thepresiding officer in the proceedings.

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This is the third adjudicatory body to be appointed by

the government under the act.

The tribunal consists of one person to be appointed bythe central government and he must have been a judge ofa high court .

He may be assisted by two assessors appointed by thegovernment to advise him in adjudicating disputes.

The presiding officers for all the three adjudicatory

bodies must be independent persons and should nothave attained the age of 65.

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These bodies are under the control of the labour departmentof the respective state government and central government.

These bodies will submit their reward for the disputereferred within three months.

The proceedings cannot lapse on the ground that theproceedings have not been completed in time or by reason ofthe death of any of the parties to dispute being a workman.

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Every investigation is deemed to be a judicial proceeding

within the meanings of sections 193 and 228 of IPC.

They have the power to substitute their decision for thedecision of the employer in disciplinary cases.

They are empowered to determine as to who, to what extentand to whom the cost of proceedings before them are to bepaid.

They are empowered to enforce the attendance of any person

for the purpose of examination of such persons, compel theproduction of documents and issue commission forexamination of witness.

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Adjudication awards of labour courts and tribunals arebinding on the parties concerned.

On receipt of the award it is to be published by theappropriate government within thirty days.

They become enforceable on the expiry of the thirty daysfrom the date of their publication.

The period of operation for any award is for one year underthe act which may be extended if the need emerges.

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The government may not accept or give effect to an award inrelation to a dispute to which it is party or if the award givenis considered inexpedient on the grounds of nationaleconomy or social justice.

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If an employer prefers any proceedings against an awardwhich directs the reinstatement of an worker, in the Highcourt or Supreme court, he is liable to pay to such workmanduring the pendency of such proceedings full wages last

drawn by him, inclusive of any maintenance allowanceadmissible to him under the rule , if the workman had notbeen employed in any other establishment during thisperiod.