Industrial dispute act 1947

Introduction
 According to Section 2 (k) of the Industrial
Disputes Act, 1947 “industrial dispute” is
defined as,
“Any disputes or differences 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”
 History
 Employer’s and Workmen’s (Disputes) Act,1860
 Trade Disputes Act,1929 .
 Act seeks to reorient the administration of the
conciliation machinery.
 The act extends to the whole of the India .
 Applies to all industries whether public and private.
Usually amended time to time.
 Latest amendments done in 1984.
 Objectives
 To secure industrial peace.
 For prevention and settlement of I.disputes
between employers and employees.
 Securing and preserving amity and good relations
between the employers and workmen.
 To ameliorate the condition of workmen in
industry.
 By redressal of grievances of workmen through a
statutory machinery.
 By providing job security.
Definitions
 Types of id
 Interest disputes
 Grievance disputes
 Unfair labour practices
 Recognition disputes
 Who can raise an Industrial Dispute?
 Any person who is a workman employed in an
industry can raise an industrial dispute.
 A workman includes any person (including an
apprentice) employed in an industry to do
manual, unskilled, skilled, technical, operational,
clerical or supervisory work for hire or reward.
 It excludes those employed in managerial or
administrative capacity.
 Parties to ID
 Employers and Employers
 Employers and Workmen
 Workmen and Workmen
Essentials of an Industrial Dispute
 It must affect a large group of workmen
 It should invariably be taken up by the industry
union or by an appreciable number of workmen
 There must be a concerted demand by the
workers for redress and the grievance becomes such
that it turns from individual complaint to a general
complaint
 If the dispute was in the beginning an individual
dispute and continued to be such till referred for
adjudication, it can not be converted into industrial
dispute by later support from other workmen
Weapons used by Unions/ Workers
 Strikes
 Boycott
 Gherao
 Picketing
 Non-cooperation/ Indicipline
 Hostility
 Absenteeism, alcoholism or high rate of
accidents
 Weapons used by Management

 Employers association
 Lock out
 Suspension
 Termination
 Authorities under the act.

 Concillation Officers
 Labour Courts
 Industrial Tribunals
 National Industrial Tribunals
 Lay off
As per the section 2(kkk) :

“Lay Off “ is the inability /failure /refusal of the employer to

give employment to workmen on his muster rolls (excluding
badlis & casuals) on account of :
 
 Shortage of coal/ power/ raw material
 Accumulation of stocks
 Breakdown of machinery
 Natural calamity (like floods / earthquake / fire / lightning,
etc) or any other connected reason
 Retrenchment
As per section 2(00), all types of termination of a workman by
an employer would be retrenchment, unless it is a
termination by way of disciplinary action or it falls under any
one of the following four exceptions :
 Voluntary retirement.
 Retirement on reaching the age of superannuation (if there is a
stipulation in the contract of employment).
 Termination resulting out of non-renewal of a fixed term
contract employment.
 Termination on account of continued ill-health.
 Closure
 A fundamental right of Employer.

 No State government intervention.

 The reasons could be actual loss or apprehended loss.

 Basically due to trade reasons.

 Lock out

 Temporary closing down of place of employment, or

suspension, or withholding of the work by the
employer
 His refusal to continue to with services of employees.
 Elements of demand leading to closedown.
 Intention is their to re-employ the workers if the
accept the demand.
 Strike & Lockout are both weapons for armory of
employee and employer .
 Settlement
 Arrived at in course of conciliation .

 Written agreement b/w parties, signed.

 Copy of the agreement sent to officer authorized by

appropriate government and conciliation officer.
 Strike
 Cessation of work by a body of persons employed.

 Concerted refusal of any number of workers who

have to continue to work or accept employment.

 Refusal under common understanding .

 When would strikes or lockouts be
illegal in public utility
 without giving at least 14 days notice. 
 Commenced after 42 days of notice.
 Prior to date indicated in the notice.
 During pendency of proceedings before conciliation
officer/board and seven days thereafter.
 During pendency of proceedings before labour court /
tribunal / arbitrators and two months thereafter.
 During the period when a settlement or award is in
operation on matters covered.
 Non-public utility service
 In breach of contract
 During pendency of conciliation before a board
and seven days thereafter
 During pendency of conciliation before labour
court / tribunal / arbitrator and two months
thereafter
 During the period on matters covered when a
settlement or award is in operation.
 Consequences of illegal
strikes/lockouts
 On workmen
 On employer

 On any person
 Extent of compensation payable to
affected workmen
In case of working for more than a year :
 worker entitled for notice and compensation

In case of unavoidable circumstances beyond the control of

employer:
 Shall not exceed average pay for three months

Consequence of violating the provisions on closure:

As per sn.25r any employer who closes down an establishment
without complying with the provisions of sn.25(o)(1) shall
be punishable with imprisonment for 6 months or with fine
upto rs.5,000/- or both.
 Penalties for..
 illegal strikes and lock-outs.
 instigation, etc
 giving financial aid to illegal strikes and
lock-outs.
 breach of settlement or award.
 disclosing confidential information.
 closure without notice.
 other offences.
 FAQs
 When does an individual dispute become an
industrial dispute?
 Are there any restrictions on the employer in the
matter of changing the service conditions of his
workmen?
 What is the punishment for committing an unfair
labour practice?
 What is the procedure for recovering money due
to a workman from his employer?
 What is not included in Industry?