The Industrial Disputes Act 1947

Chapter I - Preliminary
Section 1: Short title, extent and commencement - may be called as Industrial Disputes Act 1947 - Extended to whole of India - Commenced from first day of April 1947 - It Consists of 81 Sections and 5 schedules

Objects of the Act

The

promotion of measures for securing amity and good relations between the employer and workmen. An investigation and settlement of industrial disputes. The prevention of illegal strikes and lockouts. Relief to workmen in the matter of lay-off, retrenchment and closure of an undertaking. Collective bargaining.

Main Features of the Act

Any

industrial dispute may be referred to an industrial tribunal by an agreement of parties to the dispute or by the State Government. An award shall be binding on both the parties to the dispute for the specified period not exceeding one year. It shall be normally enforced by the Government.

 Strikes

and lock-outs are prohibited:

During the pendency of conciliation and adjudication proceedings During the pendency of settlements reached in the course of conciliation proceedings During the pendency of awards of Industrial Tribunal declared binding by the appropriate Government.
In

public interest or emergency the appropriate Government has power to declare the transport, coal, cotton textiles, food stuffs and iron & steel industries to be a public utility service.

 In

case of lay off or retrenchment of workmen the employer is required to pay compensation to them. Provision has also been made for payment of compensation to workmen in case of transfer or closure on an undertaking. A number of authorities are provided for settlement of industrial disputes.

Chapter I Preliminary
Section 2: Definitions ( a) Appropriate Government (b) Award (cc) Closure (g) Employer (j) Industry (k) Industrial Dispute

Chapter I Preliminary
Section 2: Definitions (kkk) Lay off (l) Lock-out (oo) Retrenchment (q) Strike (s) Workman

Chapter II- Authorities under the Act

I. II. III. IV.

Works Committee (Section 3) Conciliation Officer Section 4) Boards of Conciliation (Section 5) Courts of Inquiry (Section 6) V. Labour Courts: Section 7: Constitution of Labour Court,Trbunals and National Tribunals Section 10: Reference of Dispute Section 11: Procedure and Power Section 15: Duties

The Third Schedule

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

Wages, including the period and mode of payment; Compensatory and other allowance; Hours of work and rest intervals; Leave with wages and holidays; Bonus, profit sharing, provident fund and gratuity; Shift working otherwise than in accordance with standing orders Classification by grades Rules of discipline Rationalisation Retrenchment of workmen and closure of establishment Any other matter that may be prescribed

The Industrial Disputes Act 1947

Report and Award Section 16: Form of Report or Award Section 17: Publication of Report Section 17A: Commencement of the awards

The Industrial Disputes Act 1947

Settlement and Award Section 2p and 2b: Definition Section 18: Persons on whom settlements and awards are binding Section 19 Period of operation of settlements and awards Section 29: Penalty for breach of Settlement or award

Strikes & Lock-outs

Strikes and Lock-outs

Definition

Under Section 2q
Strike means a cessation of work by a body of persons employed in any industry acting in combination or a concerted refusal, or a refusal, under a common understanding of any number of persons who are or have been so employed to continue to work or to accept employment.

Strikes and Lock-outs

Under Section 2l

Lock-out means the temporary closing of a place of employment or the suspension of work, or the refusal by an employer to continue to employ any number of persons employed by him.

Strikes and Lock-outs

Section 23: General prohibition of Strikes and Lock-outs No workman is allowed to go on strike - during the pendency of conciliation proceedings before Board of Conciliation and 7 days after conclusion. - during the pendency of proceedings before Labour Court / Tribunal / National Tribunal and 2 months after conclusion. - during the pendency of arbitration proceedings and 2 months after conclusion. - during any period in which a settlement or award is in operation.

Strikes and Lock-outs

Section 22: Prohibition of Strikes and Lock-outs (in public utility services) A person employed in PUS must not go on strike - without giving a notice of strike within 6 weeks before striking. - within 14 days of giving such notice. - before the expiry of the date of strike specified in the notice - during the pendency of conciliation proceedings before a conciliation officer and 7 days after conculsion.

Strikes and Lock-outs

Section 24: Illegal Strikes and Lock-outs Strikes or lock- out is illegal in following cases - if it commenced or declared in contravention of the provisions of sec. 22 & 23 - if it continued in contravention of an order passed by appropriate government for prohibition of strike/ lockout (when dispute was referred to Authorities). - if it is continued in contravention of an order passed by appropriate government (when dispute was referred to Arbitration).

Strikes and Lock-outs

Section 25: Prohibition of financial aid to illegal Strikes and Lock-outs Act Prohibits expending or applying any money in direct furtherance or support of any illegal strike. Section 26: Penalty for illegal strikes and lock-outs Participating in illegal strike in punishable with imprisonment up to 1 month or fine up to Rs. 50 or both Declaring by an employer an illegal lock-out is punishable with imprisonment up to 1 month or fine up to Rs. 1000 or both.

Strikes and Lock-outs

Section 28: Penalty for giving financial aid to illegal strikes and lock-outs Any person, who instigates or incites another person to take part in, or finances any illegal strike or lock-out is punishable with imprisonment up to 6 months or with fine up to Rs. 1000 or both.

Lay-off, Retrenchment & Closure

Lay-off, Retrenchment & Closure

Definition Under Sec. 2kkk Lay-off means the failure, refusal or inability of an employer on account of shortage of coal, power or raw materials or the accumulation of stocks or the breakdown of machinery to give employment to a workman whose name is borne on the muster rolls of his industrial establishment and who has not been retrenched.

Lay-off, Retrenchment & Closure

Under Sec. 2oo Retrenchment means the termination by the employer of the service of a workman for any reason whatsoever, otherwise than as a punishment inflicted by way of disciplinary action.

Lay-off, Retrenchment & Closure

Section 25A: Application of Section 25C and 25E The provisions of the act do not apply to an industrial establishment - in which less than 50 workmen are employed. - which is of a seasonal character.

Lay-off, Retrenchment & Closure

Section 25C: Right of workmen laid-off for compensation - The workman whose name is borne on the muster rolls and who has completed one year continuous service, is laid-off is entitled to compensation. - Compensation should be equal to 50% of the total basic wages and dearness allowance. - If workman has been laid-off for more than 45 days, no compensation is payable after the expiry of first 45 days.

Lay-off, Retrenchment & Closure

Section 25 E: Workman not entitled to compensation Workman is not entitled to compensation under following cases - if he refuses to accept any alternative employment under same employer - if he does not present himself for work at the establishment at the appointed time atleast once a day. - if such laying-off is due to a strike or slowing down of production on the part of workmen

Lay-off, Retrenchment & Closure

Under Sec. 2oo Retrenchment means the termination by the employer of the service of a workman for any reason whatsoever, otherwise than as a punishment inflicted by way of disciplinary action.

Section 25F: Conditions precedent to retrenchment of workmen Act prohibits the retrenchment of any workman employed in continuous service for atleast one year under following conditions - the workman has been given one months notice in writing indicating the reason. - workman has to be paid compensation of 15days average pay for every completed year of continuous service. - notice has been served in the prescribed manner on the appropriate government by notification in the official gazette.

Lay-off, Retrenchment & Closure

Lay-off, Retrenchment & Closure

Section 25FFF: Compensation in case of transfer of undertakings Where the ownership or management of an undertaking is transferred to a new employer before such transfer every workman is entitled to compensation and notice as if he had been retrenched

Lay-off, Retrenchment & Closure

Under Sec. 2cc Closure means permanent closing down of a place of employment or part thereof.

Lay-off, Retrenchment & Closure

Section 25FFA: Notice of intention to close down an undertaking Employer who is intending to close down an undertaking should serve 60 days prior notice to his workman.