The Industrial Disputes Act, 1947

Preliminary:
The Industrial Disputes Act, 1947 extends to whole of India. It came into
operation on the first day of April, 1947. This Act replaced the Trade Disputes Act
of 1929. The Trade Disputes Act imposed certain restraints on the riht of stri!e
and loc!out in "u#lic $tility %er&ices. 'ut no pro&ision was existin for the
settlement of Industrial Disputes, either #y reference to a 'oard of (onciliation or
to a (ourt of In)uiry. In order to remo&e this deficiency, the Industrial Disputes
Act, 1947 was passed.
Scope and Obects !Sec" 1# ,
The o#*ects of the industrial relation+s leislation in eneral are to maintain
industrial peace and, to achie&e economic *ustice. . .
The prosperity of any industry &ery much depends upon its rowin
production. "roduction is possi#le when the industry functions smoothly without
any distur#ances. This means industrial peace throuh harmonious relationship
#etween la#our and manaement. Therefore e&ery industrial relations leislati)n
necessarily aims at pro&idin conditions coneniel to the industrial peace.
,conomic *ustice is another o#*ecti&e of industrial leislation. Almost all
industrial interuptions in production are due to industrial disputes. Dissatisfaction
with the existin economic conditions is the root cause of industrial disputes. The
la#our demands for fair return is expressed in &aried forms- e.. increase in
waes, resistance to decrease in waes and rant of allowance and #enefits etc.
If a la#ourer wants to achie&e these ains indi&idually, he fails #ecause of his
wea!er #arainin power aainst the sound economic footin of the
manaement. Therefore, the economic strule of la#our with capital can #e
fouht collecti&ity #y oranised la#ours. It is with this o#*ect to pro&ide economic
*ustice #y ensurin fair return to the la#our, the %tate, #ein the custodian of
pu#lic interest, inter&enes #y +%tate leislation+ ,conomic *ustice has also #een
ensured to the people of India #y our (onstitution.
Thus the main o#*ect of all la#our leislation is to ensure fair waes and to
pre&ent disputes so that the production miht not #e ad&ersely affected2. The
principal o#*ects of Industrial Disputes Act as analy.ed and interpreted #y the
%upreme (ourt are as follows./
011 The promotion of measures for securrin and preser&in amity and
ood relations #etween employers and wor!men-
021 In&estiation and settlement of industrial dispute #etween employers
and employers, employers and wor!men, or #etween wor!men and wor!men
with a riht of representation #y a reistered Trade $nion or . 2ederation of
Trade $nions or Association of ,mployers or a 2ederation of Association of
,mployers.
0/1 The pre&ention of illeal stri!es and loc!3outs-
041 4elief to wor!men in the matter of lay3oft, retrenchment and closure of
an underta!in. .
051 (ollecti&e #arainin.
$ain %eatures or &haracterstics o' the Act66
%ome of the important features of the Act may #e summearised as
#elow6
1. Any industrial dispute may #e referred to an industrial tri#inal #y mutual
consent of paries to dispute or #y the %tate 7o&ernment, if it deems expedient
to do so.
2. An award shall #e #indin on #oth the parties to the dispute for the
operated period, not exceedin one year-
/. %tri!e and loc!outs are prohi#ited durin6
0a1 The pendency of conciliation and ad*udication proceedins-
0#1 the pendency of settlements reached in the course of conciliation
proceedins, and .
0c1 the pendency of awards of Industrial Tri#unal declared #indin #y
the appropriate 7o&ernment.
4. In pu#lic interest or emerency, the appropriate 7o&ernment has
power to declare the transport 0other than railways1, coal, cotton
textiles, food stuffs and iron and steel industries to #e pu#lic utility
ser&ices for the purpose of the Act, for a maximum period of six
months.
5. In case of lay3oft or retrenchment of wor!men, the employer is
re)uested to pay compensation to them. This pro&ision stands in
the case of transfer or closure of an underta!in.
8. A num#er of authorities 09or!s (ommittees, (onciliation :fficers,
'oard of conciliation, (ourts of In)uiry, ;a#our (ourts, Tri#unal
and <ational Tri#unal1 are pro&ided for settlement of Industrial
disputes. Althouh the nature of powers, functions and duties of
these authorities differ from each other, e&eryone plays important
role in ensurin industrial peace.
Definitions !Sec"(# 6
0a1 Appropriate 7o&ernment6 The (entral 7o&ernment as well as the
%tate 7o&ernment are &ested with &arious powers and duties in
relation to matters dealt with in this Act. In relation to some
industrial disputes the (entral 7o&ernment and in relation to some
others, the %tate 7o&ernment concerned are the appropriate
7o&ernment to deal with such disputes.
$nder su#3section =0i1 0a1> and =0i10#1> of the Act,
(ompanies?(orporations?
Trusts?'oards? Authorities, etc. esta#lished under the Act of
"arliament- the (entral 7o&ernment is the Appropriate Authority.
In all other cases, the Appropriate 7o&ernment is the
%tate 7o&ernment within whose territory the industrial dispute aries
%u#3section 0ii1.
!aa# Arbitrator 3 Ar#itrator includes an umpire.
!aaa# A)era*e Pay 3 @A&erae "ay@ means the a&erae of the
waes paya#le to a wor!men, A&erae pay in the case of wor!men
means6
0i1 In the (ase of monthly paid wor!man3 The a&erae of monthly
waes paya#le in three complete calendar months.
0ii1 In the case of wee!ly paid wor!man 3 the a&erae of the wee!ly
waes paya#le in four complete wee!s.
0iii1 In the case of daily paid wor!man 3 the a&erae of the waes for
twel&e full wor!in days.
!b# A+ard 3 +Award+ means an interim or final determination of any+
industrial
dispute or of any )uestion relatin thereto. The determination must #e
made #y any ;a#our (ourt, Industrial Tri#unal or <ational Tri#unal.
,nforcement of an award 3 An award may #e enforced in the
followin ways6
011 The arie&ed party may apply to Appropriate 7o&ernment for
prosecutin the defaultin party under %ec. 29 or /1 of this Act.
021 9here the wor! man +isto claim money from the employer, the
wor!man may mo&e the Appropriate 7o&ernment for reco&ery of
the money due to him under the award.
0/1 The party in whose fa&our the award has #een ranted may file
a suit and o#tain a decree, which shall #e enforced extension under
pro&isions of the (i&il "rocedure (ode.
9here the interim order did not determine any part of the industrial dispute or
any other )uestion relatin there to, #ut only determined whether the Industrial
Tri#unal has #een properly constituted to which the industrial dispute could #e
referred for ad*udication, such order cannot #e said to #e an award as defined in
%ec. 20#12
!bb# ,an-in* &ompany 3 +'an!in (ompany+ means a #an!in company
as defined in %ec.5 of the 'an!in (ompanies Act, 1949.
!c# ,oard 3 +'oard+ means a 'oard of (onciliation constituted under this
Act.
!cc# &losure 3 +(losure+ means the permanent closin down of a place of
employment or part thereof
Penalty 'or closure !Sec" (./#
1. Any employer who close down an underta!in without complyin with
the pro&isions of the %u#3%ec. 011 of %ec. 253A shall #e punisha#le
with imprisonment up to 8 months, or with fine up to 4s. 5,AAA or
with #oth.
2. Any employer, who contra&enes a direction i&en under %u#3sec. 021
of %ec. 253A or %ec. 253", shall #e punisha#le with imprisonment
up to one year, or with fine up to 4s. 2,AAA for e&ery day durin
which the contra&ention continues after the con&iction.
/. Any employer who contra&enes the pro&isions of %u# %ec. 253A shall
#e punisha#le with imprisonment up to one month, or with fine up
to 4s. 1AAA or with #oth.
0d1 &onciliation O''icer 3 +(onciliation :fficer+ means a conciliation
officer appointed under the Act. .
0e1 &onciliation Proceedin* 3 +(onciliation "roceedin+ means any
proceedin held #y a (onciliation :fficer or 'oard under the Act.
!ee# &ontrolled Industry 3 @(ontrolled Industry@ means any industry the
control of which, #y the $nion has #een declared #y any (entral Act
to the expedient in the pu#lic interest. That is, an industry which is
controlled #y the (entral 7o&ernment. 'ut it must also #e declared
#y the (entral Act to #e controlled #y the $nion.
!'# &ourt 3 @(ourt@ means a (ourt of In)uiry constituted under this Act. 01
!*# 0mployer 3 @,mployer@ means, in relation to industries carried on
#y or under the authority of 0i1 (entral 7o&ernment, 0ii1 %tate
7o&ernment, or 0iii1 ;ocal Authorities.
!h# 01ecuti)e 3 @,xecuti&e@, in relation to a Trade $nion means the #ody
#y whate&er name called, to which #y manaement of the affairs of
the Trade $nion is entrusted.
!i# Independent 3 Beans, for the purpose of appointment of a person as
(hairman or other mem#er of a 'oard, (ourt or Tri#unal. In order
that a person may #e elii#le for his appointment to these #odies,
he must possess the followin )ualifications6
0i1 . Ce must #e unconnected with industrial dispute in )uestion, or.
0ii1 Ce must #e unconnected with any industry directly affected #y
such dispute.
!# Industry 3 Industry means any #usiness, trade, underta!in, manufacture
or any ser&ice, employment, handicraft or industrial occupation or
&ocation of wor!men.
In a &ase In 'anlore 9ater.%upply &. A 4a*appa 1 a #ench of the
%upreme (ourt consistin of se&en *udes exclusi&ely considered the scope of
industry and laid down the followin test which has practically reiterated as
under6
@9here there is 0i1 systematic acti&ity, 0ii1 oranised #y co3operation #etween
employer and employee, 0iii1 for the production and?or distri#ution of oods and
ser&ices calculated to satisfy human wants and wishes, prima facie, these is an
@Industry@ in that enterprise.@ This is !nown as Triple Test.
The 2ollowin points were also emphasised in the said case6
011 Industry does not include spiritual or reliious ser&ices or ser&ices eared to
celestial #liss, e.. ma!in on a lare scale, @parsed@ or food.
021 A#sence of profit moti&e or ainful o#*ecti&e is irrele&ant #ut, #e the
&enture in the pu#lic, *oint, pri&ate or other sector.
0/1 The true focus is functional and the decisi&e test is the nature of the
acti&ity with special emphasis on the employer3employee relations.
041 If the oranisation is a trade or #usiness, it does not cease to #e one #ecause
of philanthropy animatin the underta!in.Therefore, the conse)uences of the
decision in this case are that professions, clu#s, educational institutions, co3
operati&es research insthtions, charita#le pro*ects and other !ind of ad&entures, if
they fulfil the triple test stated a#o&e cannot #e exempted from the scope of
industry.+
!-# Industrial Disputes 3 Industrial Dispute is 6 011 a dispute or difference
#etween 0a1 employers and employers, or 0#1 employers and
wor!men,
0c1 wor!men and wor!men- . .
021 the dispute or difference should #e connected with 0a1 employment or .
non3employment, or 0#1 terms of employment, or 0c1 conditions of
la#our
of any person- .
0/1 the dispute may #e in relation to any wor!man or wor!men or any
other
person in whom they are interested as a #ody.
!-a# Industrial 0stablishment or 2nderta-in* 3 It means an
esta#lishment or underta!in in which any industry is carried on- pro&ided that,
where se&eral acti&ities are carried on in an esta#lishement or underta!in and
only one or some of such acti&ities is or are an industry or industries6
!--# Insurance &ompany 3 Accordin to this su#3section, an insurance
is one, which company is defined in %ec. 2 of the Insurance Act,
19/D, ha&in #ranches or other esta#lishments in more than one
%tate.
!--a# 3hadi 3 @Ehadi@ has the meanin assined to it in clause 0 d1 of %ec.
2 of the Ehadi and Fillae Industries (ommission Act, 1958.
!--b# labour &ourt.- It means a ;a#our.(ourt constituted under %ec. 7 of
the Industrial Disputes Act, 1947.
!---# lay O'' 3 Beans puttin aside wor!men temporarily. The duration of
lay off should not #e for a period loner than the period of
emerency. The employer3employee relationship does not come to
an end durin the
period of lay3off #ut is merely suspended durin the period of
emerency.
Any such refusal or failure to employ a wor!man may #e on account of6
0i1 shortae of coal, power or raw materials or
0ii1 the accumulation of stoc!- or
0iii1 the #rea!down of machinery- or
0i&1 natural calamity- or
0&1 any other connected reasons.
Prohibition o' lay4o'' !as substituted by Amendment Act5 1964#
Accordin to %ec. 25B of Industrial Disputes Act, 1947, no wor!man
whose name is #orne on the muster rolls of an industrial esta#lishment shall #e
laid off #y his employer except with the prior permission of the appropriate
7o&ernment or such authority, as may #e specified #y that 7o&ernment.
/eco)ery o' money due 'rom an employer !Sec" 77&#
9here any money is due to a wor!man from an employer under a
settlement or an award or for layoff or retrenchment, the wor!man himself or
any other person authorised #y him in writin in this #ehalf, or in the case of the
death of the wor!man, his assinee or heirs may, without pre*udice to any other
mode of reco&ery, ma!e an application, within one year from the date on which
the money #ecame due to the wor!man, to appropriate 7o&ernment for the
reco&ery of money due to him, and if the appropriate 7o&ernment is satisfied
that any money is due to him, it shall issue a certificate for that amount to the
(ollector who shall proceed to reco&er the same in the same manner as an
arrear of land re&enue.
Penalty 'or layo'' +ithout permission !Sec" (.8#
Any mem#er who contra&enes the pro&isions of %ec. 25B shall #e
punisha#le with imprisonment for a term which may extend to one month, or with
fine which may extend to 4s. 1AAA, or with #oth.
0I1 9oc- out 4 Beans the closin of a place of employment, or the
suspension of wor!, or the refusal #y an employer to continue to
employ any num#er of persons employed #y him.
9hile stri!e is a weapon in the hands of the la#our to force the
manaement to accept their demands, loc!out is a weapon in the
hands of the manaement to coerce the la#our to come down in
their demand srelatin to the conditions of employment.
;oc!outs has #een descri#ed #y the %upreme (ourt as the
antithesis of stri!e.1
Di''erence bet+een loc-out and lay4o'':
011 ;oc!out is an act on the part of the employer to pressurise the la#our-
while layoff is for trade reasons, #eyond the control of the employer-
i.e., it is not intentional act.
021 ;oc!out is exercised due to an industrial dispute and continues durin
the period of dispute- layoff is not necessiorily concerned with
dispute with wor!men.
Di''erence bet+een loc-4out and retrenchment:
011 Temporary or permanent6 ;oc!out is temporary measure, while
retrenchment is permanent.
021 /elationship6 In loc!out the relationship of employer and employee is
only suspended- it does not come to an end. In retrenchment such a
relationship is se&ered at the instance of the employer.
0/1 $oti)e6 ;oc!out is with a moti&e to coerce the wor!men- the intention
of retrenchment is to dispense with surplus la#our.
041 Trade dispute6 ;oc!out is due to an industrial dispute, whereas in
case of retrenchment, there is no such dispute
Difference between lock-out and closure
011 Temporary?"ermanent6 ;oc!out is temporary measure, whereas
closure is permanent. .
021 9eapon of coercion6 ;oc!out is a weapon of coercion in the hands of
employer- while closure is enerally made for trade reasons.
0/1 Trade Dispute6 ;oc!out is declared durin an industrial dispute, while
in case of closure, there need not #e any dispute.
0Ia1 $aor Port: Beans a port as defined in clause D of %ec. / of the Indian
"ort Act. 19A/- which reads as follows6
@Any port which the (entral 7o&ernment may #y notification in official
7a.ette declare or may #y any law for the time #ein in force, ha&e
declared to #e a ma*or port@.
0I #1 $ine6 Beans a mine as defined in clause 0*1 of su#3section 011 of %ec. 2 of
the Bines Act, 1952, 9hich reads as under6
@Bine means any exca&ation where any operation for the purpose of
searchin for or o#tainin minerals has #een, or is #ein carried on, and
includes, 0unless exempted #y the (entral 7o&ernment #y notification in
the official 7a.ette1 any premises or part thereof, on which any process
ancillary to the ettin, dressin or preparation for sale of mineral or of
co!e is #ein carried on 6@
0II1 :ational Tribunal6 Beans a <ational Tri#unal constituted under %ec. 7D of
the Act.
0III1 :ffice 'earer6 In relation to a Trade union, it includes any mem#er of the
executi&e thereof, #ut does not include on auditor. 0m1 "rescri#ed6 Beans
prescri#ed #y rules made under this act. 0n1 "u#lic utility ser&ices6 The followin
are pu#lic utility ser&ices as laid down #y the Act 6
0i1 any railway ser&ice-
0ii1 any transport ser&ice for the carriae of passeners or oods #y
air-
0iii1 any ser&ice in or in connection with the wor!in of any ma*or port
or doc!-
0i&1 any section of an industrial esta#lishment, on the wor!in of
which
the safety of the esta#lishment or the wor!men employed therein
. depends-
0&1 any postal, teleraph or telephone ser&ice-
0&i1 any industry which supplies power, liht or water to the pu#lic-
0&ii1 any system of pu#lic conser&ancy or sanitation.
0&iii1 any industry specified in the 2irst %chedule which the
appropriate
7o&ernment may, if satisfied that pu#lic emerency or pu#lic
interest so re)uires, #y notification in the :fficial 7a.ette
declare to #e a pu#lic utility ser&ice for the purpose of this
Act, for such period as may #e specified in the notification.
!;# /ail+ay company 3 Beans a 4ailway (ompany as defined in %ec.D of the
Indian 4ailway Act, 1D9A. %ec /051 of the Indian 4ailways Act states,
@4ailway (ompany@ includes any person whether incorporated or not
who are owners or lessees of a railway or parties to any areement for
wor!in a railway.@%ec. /041 of the Indian 4ailways Act defines the term
@4ailway@ as. @4ailway means a railway, or any portion of a railway, for
the pu#lic carriae of passeners, animals or oods. and includes6
0a1 all lines of rails, or #ranches wor!ed o&er the purpose of or in
connection with a railway.
0#1 all stations, :ffices, 9or!houses, 9here&er, wor!shops, 2ixed plant
and machinery and other wor!s constructed in connection with a railway,
and
0c1 all ferries, ships, #oats and rafts which are used in inland waters for the
purpose of traffic of railway and #elon to or are hired or wor!ed #y
the authority administerin the railways.@ .
(00) /etrenchment 3 Beans the dischare of surplus la#our or staff #y the
employer
for any reason 9hat3so3e&er.+
The term @retrenchment@ defines under the section 20AA1 may #e analysed
as6
011 4etrenchment means the termination #y the employer of the ser&ices
of a wor!man.
021 The termination may #e for any reason what so e&er.
0/1 'ut the termination should not #e as a measure. of punishment #y way
of disciplinary action.
&onditions o' retrenchment:
Accordin to %ec. 252 of the Act no wor!man employed in any industry
who has #een in continuous ser&ice for not less than one year under an
employer shall #e
retrenched #y the employer until6 .
0a1 the wor!man has #een i&en one month+s notice in writin indicatin
the reasons for retrenchment, or the wor!man has #een paid in lieu
of such notice, waes for the period of notice-
0#1 the wor!man has #een paid, at the time of retrenchment,
compensation which shall #e e)ui&alent to 15 days a&erae pay for
e&ery completed
year of continuous ser&ice or any part thereof, in excess of 8
months, and
0c1 notice in the prescri#ed manner is ser&ed on the appropriate
7o&ernment or such authority as may #e specified #y the
appropriate 7o&ernment #y notification in the :fficial 7a.ette.
Re-employment o' retrenched +or-men
Accordin to %ec. 25C of the Act, where any wor!men are retrenched and
the employer proposes to employ any persons, #e shall, in such manner as may
#e prescri#ed, i&e an opportunity to retrenched wor!men who are citi.ens of
India offer themsel&es for the re3employment, and the retrenched wor!men who
offer themsel&es for re3employment, shall ha&e preference o&er others. 'ut this
section cannot #e applied retrospecti&ely =(ase6 4,% 4amdayal &. ;a#our
Appellate Tri#unal 0%ec. 5871 31984>.
The 'ollo+in* cases are not retrenchment
0a1 Foluntary retirement of a wor!man, or
0#1 retirement of a wor!man on reachin the ae of superannuation if the
contract of employment #etween the employer and the wor!man
concerned contains a stipulation in that #ehalf- or
0##1 Termination of the ser&ice of a wor!man as a result of the non3
renewal of the cortract of employment #etween the employer and
the wor!man concerned on its expiry or of such contract #ein
terminated.
Di''erence bet+een retrenchment and closure
011 4etrenchment affects only some of the wor!man, whereas closure
affects all wor!man.
021 In retrenchment the trade or #usiness remains uninterrupted as it
continues- while in closure the #usiness itself is discontinued.
0)1 %tri!e 3 %tri!e means 011 cessation of wor! #y a #ody of persons
employed in any industry actin in com#ination, or 021 a concerted
refusal of any num#er of persons who are or ha&e #een employed in
any industry to continue to wor! or to accept employment- or 0/1 to
refusal under a common understandin of any num#er of persons
who are or ha&e #een employed in industry to continue to wor! or to
accept employment.
%eatures o' stri-e
011 It is the stoppae of wor! #y a #ody of wor!men actin in concert with
a &iew to #rin pressure upon the employer to concede to their
demands.
021 The wor!men must #e employed in any industry.
0/1 Bore cessation of wor! does not come within the pre&iew of stri!e,
unless it can #e shown that such cessation of wor! was a concerted
action for the enforcement of an industrial demand1.
3inds o' stri-e
These are three !inds of stri!es, namely6 011 7eneral stri!e, 021 %tay3in3stri!e,
and 0/1 7o slow stri!e.
01# <eneral stri-e: A eneral stri!e is one, where the wor!men *oin toether
for common cause and stay away from wor!, depri&in the employer of
their la#our needed to run the factory.
0(# Stay4in4stri-e 6 A stay3in3stri!e is also !nown as @total3dawn3stri!e@ or
+pen3dawn3stri!e@. It is the form of stri!e where the wor!men report to
their duties, occupy the premises, #ut do not wor!. The employer is
thus pre&ented from employin other la#our to carryon his #usiness.
!7# <o4slo+ stri-e: In a +7o %low+ stri!e, the .wor!men do not stay away
from wor!, they do come to their wor! and wor! also, #ut with a slow speed in
order to lower down production, and there#y cause loss to the employer.
In addition to these three forms of stri!e a few more may #e cited,
althouh some of them are not stri!e within the meanin of %u#3
%ection 20)1. %uch forms are6
!i# Sympathetic stri-e: A sympathetic stri!e is resorted to in sympathy
of other stri!in wor!men. Its aim is to encourae or to extend
moral support to or indirectly to aid the stri!in wor!men. The
sympathisers resortin to such stri!e ha&e no demand of rie&ance
of their own.
!ii# =un*er stri-e: In huner stri!e, a roup of wor!men resort to fastin
on or near the place of wor! or the residence of the employer with
a &iew to coerce the employer to accept their demands.
!iii# >or- to rule 6 The employers in this case of @wor! to rule@ strictly
adhere to rules while performin their duties which ordinarily they
do not o#ser&e. This causes the slowin down the tempo of wor!.
It is not a stri!e #ecause there is no stoppae of wor! at all.
!??# Trade 2nion: Beans a trade union reistered under the Trade $nion
Act, 1928.
!r# Tribunal: Tri#unal means an Industrial Tri#unal constituted under %ec.
7 3A of the Act. It also includes an Industrial Tri#unal constituted
#efore 1Ath Barch, 1957 under this Act.
!ra# 2n'air labour practice: It means any of the practices specified in the
2ifth %chedule.
" !rb# @illa*e Industries: It has the meanin assined to it in clause 0h1 of
%ec.2 of the Ehadi and Fillae Industries (ommission Act, 1958.
(rr) >a*es6 It means all remuneration capa#le of #ein expressed in
terms of money, which would, if the terms of payment, expressed or
implied were fulfilled, #e paya#le to a wor!man in respect of his
employment or of wor! done in such employment. 9aes also
includes0i1 dearness allowance as the wor!men is for the time #ein
entitled to- 0ii1 the &alue of any house accommodation, or of the
supply of liht, water, medical #enefits or any concessional, supply
of food rains or other articles- 0iii1 any tra&ellin concession- 0i&1
any commission paya#le on sales promotion or #usiness, or #oth.
Cowe&er, the followin are not waes63 0a1 any #onus- 0#1 any
contri#ution paid or paya#le #y the employer to any pension fund or
pro&ident fund., 0c1 any ratuity paya#le on the termination of
ser&ice of wor!man.
!s# >or-man: +9or!man@ means any person 0includin an apprentice1
employed in any industry to do any manual, uns!illed, s!illed,
technical, operational, clerical or super&isory wor! for hire or
reward, whether the terms of employment #e express or implied,
.and for the purpose of any proceedin under this Act. .
@9or!man@ does not include any such person 3 0i1 who is su#*ect to
the Air 2orce Act, 195A, or the Army Act, 195A, or the <a&y Act,
1957, or 0ii1 who is employed in the "olice %er&ice or as an officer
or other employee of a prison, or 0iii1 who is employed mainly in a
manaerial or administrati&e capacity, or 0i&1 who, #ein employed
in a super&isory
capacity, draws waes exceedin 4s. 18AA?3 per mensem, or
exercises functions mainly of manaement nature.
Di''erence bet+een +or-man and independent contractor:
011 2or any person to #e a wor!man, it is necessary that he should #e in
the employment of an employer. Berely a contract to do some wor!
is not enouh to #e called as wor!er.
021 4elationship of master and ser&ant must #e implied in the term of
@employed@ as a wor!man. In the a#sence of such a relationship
one cannot #e admitted or esta#lished as a wor!man.
Authorities under the ACT
Power and Duties
The ad*udication of industrial disputes has #een !ept out of the *urisdiction
of Bunicipal (ourts at the first instance so that effort may #e made for settlement
of such disputes throuh some other aencies. The &arious modes of settlement
of industrial disputes pro&ided #y the Act. may #e classified under three heads6
011 (onciliation 021 Ad*udication and 0/1 Ar#itration
Authorities ma!e use of conciliation
The authorities that ma!e use of conciliation on the sole method of
settlement of disputes are6
011 9or!s (ommittee
. 021 (onciliation :fficer
0/1 'oard of (onciliation
The ad*udicatin authorities that decide any dispute under the Act.
are6
011 (ourt of In)uiry
021 The ;a#our (ourt
0/1 Industrial Tri#unal-
041 <ational Tri#unal, and
%ec. 1A3A of the Act. ma!es pro&ision for &oluntary reference of disputes
to ar#itration. Apart from the a#o&e, pro&ision has also #een made for
constitution of (ourt of In)uiry, whose main function is in)uire into any matter
appearin to #e connected with or rele&ant to an industrial dispute
1" >or- committee !Sec"7#
The wor!s committee is considered to #e powerful social institution only to
secure cooperation #etween wor!ers and employers, #ut to ma!e the will of the
employees effecti&e on the manaement. Accordin to sec./ of the Industrial
Disputes Act, 194@1, in the case of an industrial esta#lishment in which 1AA or
more wor!men are employed or ha&e #een employed oh any day in the
precedin 12 months, the appropriate 7o&ernment may, #y eneral or special
order, re)uire the employer to constitute a 9or!s committee consistin of
representati&es of employers and wor!men enaed in the esta#lishment. The
num#er of representati&es of wor!men on 9or!s (ommittee shall #e not #ein
less than that of the representati&es of the employers.
The representati&es of the wor!men shall #e chosen from amon the wor!men in
consultation with their trade union, if any reistered under the Indian Trade $nion
Act.1928. .
The duties of the 9or!s (ommittee are to promote measures for securin
and preser&in amity and ood relations #etween the employers and wor!men
and to comment upon matters of their interest or concern and to endea&our to
compose any material difference of opinion in respect of matters of common
intents or concern of employers and wor!men.
(" &onciliation O''icers !Sec"4#
The appropriate 7o&ernment may #y notification in the official a.ette,
interest appoint conciliation officers for any specified area or for one or more
specified industries, either permanently or for a limited period of time.
(onciliation officers are chared with the duty of holdin conciliatory
proceedins for the purpose of #rinin a#out a fair and amica#le settlement of
any industrial dispute. The *urisdiction, powers and other matters in respect of
the (onciliation :fficer Ghall #e pu#lished in the 7a.ette
Po+ers o' &onciliation O''icer: Accordin to %ec.11 of the Act, conciliation
officer may, for the purpose of in)uiry into any existin or apprehended industrial
dispute, after i&in reasona#le notice, enter the premises occupied #y any
esta#lishment which the dispute relates. Ce may call for and inspect any
document which he has round for considerin to #e rele&ant to the industrial
dispute or #e necessary for the purpose of &erifyin the implementation of any
award or carryin out any duty imposed on him under the Act. and for the
aforesaid purposes. Ce will ha&e the same powers as one &ested in a (i&il (ourt,
in respect of compellin the production of documents.
$nder %ec 11081, (onciliation :fficers are mem#ers of 'oard or (ourt
and the "residin :fficer of ;a#our (ourt Tri#unal or <ational Tri#unal shall #e
deemed to #e pu#lic ser&ants within the meanin of %ec.21 of I"(.
Duties o' &onciliation O''icers !sec"1(#:
2or the purpose of #rinin a#out fair and amica#le settlement of an
industrial dispute, the (onciliation :fficer is re)uired to dischare the followin
duties3 .
011 where any industrial dispute exists or is apprehended, the
(onciliation :fficer, shall hold conciliation proceedins. Ce will
inter&iew #oth the wor!men concerned with the dispute and
endea&our to #rin a#out a settlement.
021 The conciliation :fficer shall, for the purpose of #rinin a#out a
settlement of the dispute, in&estiate the dispute and all matters
affectin the merits and the riht settlement thereof and may do all
such thins as he thin!s fit for the purpose of inducin the parties
to come to a fair
and amica#le settlement of the dispute. .
0/1 If a settlement of the dispute or of any of the matters in dispute is
arri&ed at in the course of the conciliation proceedins, the
(onciliation :fficer shall send a report thereof to the settlement
sined #y the parties
to dispute. .
041 If no such settlement is arri&ed at, the (onciliation :fficer shall, as
soon as practica#le after the close of the in&estiation, send to the
appropriate 7o&ernment a full report settin forth the steps ta!en
#y him for ascertainin the facts and circumstances relatin to the
dispute and for #rinin a#out a settlement thereof, toether with a
full statement
of such facts and circumstances, and the reasons on account of
which, in his opinion, a settlement could not #e arri&ed at.
051 The report must #e su#mitted within 14 days of the commencement
of the conciliation proceedins or within such shorter period as
may #e fixed #y the appropriate 7o&ernment6 pro&ided that,
su#*ect to the appro&al of the (onciliation :fficer, the time for the
su#mission of the report may #e extended #y such period as may
#e areed upon in writin #y all the parties to the dispute.
081. If, on a consideration of the report in respect of failure of settlement,
the appropriate 7o&ernment is satisfied that there is a case for
reference to 'oard, ;a#our (ourt, Tri#unal or <ational Tri#unal, it
may ma!e such reference. 9here the 7o&ernment does not ma!e
such a reference, it shall record and communicate to the parties
concerned it+s reasons thereof
7 ,oard o' &onciliation !Sec".#
The appropriate 7o&t. may as occasion arises #y notification in the in the
:fficial 7a.ette constitute a 'oard of (onciliation for promotin the settlement
of an industrial dispute. A 'oard shall consist of a (hairman and two or four other
mem#ers, as the appropriate 7o&ernment thin!s fit. The (hairman shall #e an
independent person and shall #e appointed on the recommendation of the party
they represent. The )uorum for a meetin is two where the total num#er is three,
and three where the num#er is fi&e. A 'oard, ha&in a )uorum, may act not
withstandin the a#sence of the chairman or any of its mem#ers, or any &acancy
in it+s num#er. 'ut- if the 7o&ernment informs the #oard that the ser&ices of the
(hairman or any other mem#er ha&e ceased to #e a&aila#le, the #oard must not
act until a new (hairman or mem#er has #een appointed.
Po+ers o' &onciliation O''icer
(onciliation :fficer has all powers of a (i&il (ourt when tryin a suit in respect
Duties o' &onciliation O''icer !Sec"17#
(onciliation :fficer has to endea&our to #rin a#out a settlement of a
dispute referred to him and to do anythin to induce the parties to come to a fair
and amica#le settlement. 9here a settlement is reached a similar report and a
memorandum of settlement ha&e to #e su#mitted to the appropriate
7o&ernment. 'ut in case of failure, apart from furnishin all the details as
re)uired in the case of a report, #y a (onciliation :fficer, he is also re)uired to
su#mit his recommendations for tha determination of the dispute. The time limit
prescri#ed for su#mission of such reports is 2 months of the date on which the
dispute was referred to him or within such shorter period as may #e fixed #y the
appropriate 7o&ernment or all the parties to the dispute may, howe&er, further
extend the period #y areement in writin. 9here a dispute, in which the 'oard
has failed to #rin a#out a settlement, relates to a pu#lic utility ser&ice and the
7o&ernment does not refer it to a ;a#our (ourt, Tri#unal or <ational Tri#unal, he
must inform the parties concerned the reasons for not doin so.
&ourts o' In?uiry !Sec"<#
The appropriate 7o&ernment may, as occasion arises, #y notification in
the official 7a.ette, constitute a (ourt of In)uiry for in)uirin into any matter
appearin
to #e connected with or rele&ant to an industrial dispute. %uch a (ourt may
consist of one or more independent persons, as the 7o&ernment may appoint.
9here it consists of more than one mem#er, one of them shall #e appointed as
(hairman. The (ourt ha&in the prescri#ed )uorum may act e&en if the
(hairman or a mem#er is a#sent- #ut not if the ser&ices of the (hairman ha&e
ceased to #e a&aila#le, and on other (hairman has #eer+ appointed. The (ourt
shall in)uire into the matters referred to it and report thereon to the appropriate
7o&ernment within 8 months from the date of commencement of the in)uiry.
Bem#ers of (ourt of In)uiry shall deemed to #e pu#lic ser&ants within the
meanin of %ec. 21 of I"(. The (ourt of In)uiry, if it so thin!s fit, appoint one or
more persons ha&in special !nowlede of the matter under consideration as
assessor or assessors to advise it In the proceedin #efore it.
:n a perusal of the rele&ant %ections 22, 2/ and // of the Act. relatin to
the (ourt durin the pendency of a proceedin #efore a (ourt of In)uiry, the
followin riht remain unaffected, such as6
0i1 The riht of a wor!man to o on stri!e
0ii1 The riht of an employer to loo!out his #usiness. and
0iii1 The riht of the employer to dismiss or otherwise to punish the
wor!man in certain cases under %ec.//
Duties of &ourts of In?uiry !Sec" 14#
The (ourt of In)uiry of shall in)uire into the matters referred to it and the
report of In)uiry thereon #e presented #efore the appropriate 7o&ernment-
ordinarily within a period of 8 months from the commencement of in)uiry.
The report of the (ourt of In)uiry shall #e in writin and #e sined #y all
the mem#ers of the (ourt, pro&ided that a mem#er may record a minutes of
dissent also. ;a#our (ourt
The appropriate 7o&ernment may, #y notification in the :fficial 7a.ette,
constitute one or more ;a#our (ourts for the ad*udication of industrial disputes
relatin to any of the followin matters or for performin such other function as
may #e assined to them under the Act. The functions of the ;a#our (ourt as
pro&ided in the
. Act. are6
0i1 Ad*udication of industrial disputes relatin to any matter specified in the
%econd %chedule
0ii1 "erformin of such other functions as may #e assined to them
under this Act. 1 he followin matters are specified in the %econd
%chedule, namely
0i1 The propriety or leality of an order passed #y an employer under
%tandin :rders- .
0ii1 The application and interpretation of %tandin :rders-
0iii1 dischare or dismissal of wor!man includin re3instatement of, or
rant of relief to- wor!men wronfully dismissed-
0i&1 withdrawal of any customary concession or pri&ilee-
0&1 illeality or otherwise of a stri!e or loc!out- and
0&i1 all matters other then those specified in the Third %chedule.
. Accordin to sec.H 021 a ;a#our (ourt shall consist of one person only
who shall #e appointed #y the appropriate 7o&ernment. 'ut no person shall #e
appointed as "residin :fficer of a ;a#our (ourt, unless 0a1 he is, or has #een
a *ude of a Cih (ourt- or 0#1 he has for a period not less then / years #een a
District Iude- or 0c1 he has held the office of the (hairman of any other
mem#er of any tri#unal, for a period of not less then two years- or 0e1 he has
#een the presidin :fficer of a ;a#our (ourt constituted under any pro&incial
Act for not less than fi&e years.
Po+ers o' the 9abour &ourt !Sec" 11#
"owers of the ;a#our (ourt to i&e appropriate relief in case of dischare or
dismissal of wor!man are as under.
011 %u#*ect to any rule that may #e made in this #ehalf, the la#our (ourt
may follow such procedure that it may thin! fit.
021 The "residin :fficer of the (ourt may, for the purpose of
in)uiry into any existin or apprehended dispute, enter into the
premises occupied #y any esta#lishment to which the dispute
relates.
0/1 The ;a#our (ourt shall ha&e all the powers as are &ested to a (i&il
(ourt.
041 If it thin!s fit, appoint one or more persons, ha&in special !nowlede.
of the matter under consideration, as an assessor to ad&ise it in the
proceedins #efore it.
Duties o' 9abour &ourt !Sec" 1.1
9here an industrial dispute has #een referred to ;a#our3(ourt, for
ad*udication, it shall hold its ad*udication expeditiously and shall, su#mit its
award to the appropriate 7o&ernment. The award of ;a#our (ourt shall #e in
writin and #e sined #y its "residin :fficer 0%ec.181
,&ery award of ;a#our (ourt, shall within a period of /A days from the
date of its receipt #y the appropriate 7o&ernment, #e pu#lished #y if in the
official 7a.ette. The award pu#lished #y the. appropriate 7o&ernment shall #e
final and #indin on the parties to dispute. %ec.17 3A pro&ides that an award
0includin ar#itration award1 shall #ecome enforcea#le on the expiry of /A days
from the date of its pu#lication under %ec. 17. The award shall not #ecome
enforcea#le on the expiry of /A days6
. 0a1 if the appropriate 7o&ernment is of opinion, in any case where the
award has #een i&en #y a ;a#our (ourt or Tri#unal in relation to
an industrial dispute to which it is a party that it will #e in expedient
to i&e effect to the whole or any part of the award on pu#lic
rounds effectin6 .
0i1 national economy, 0ii1 social *ustice. .
0#1 if the (entral 7o&ernment, in any case where the award has #een
i&en #y a <ational Tri#unal, on similar rounds in of the opinion
that it would #e in expedient to i&e effect to the whole .or part of
the award.
2or the purpose of stoppin the enforcement of any award, a notification in
the :fficial 7a.ette is necessary.
Industrial Tribunals !Sec" 7 A#
. Industrial Tri#unals were created for it+s first time #y the Industrial Dispute
Act.1947. (ommentin upon the starts of these tri#unal, the %upreme (ourt
has o#ser&ed that tri#unals under the Act. are in&ested with many trappins of
a (ourt- #ut do not ha&e the same status as courts+. The Tri#unal is the *udicial
#ody or at any rate, a )uasi3*udicial #ody2.
The appropriate 7o&ernment may #y notification in the :fficial 7a.ette,
constitute one or more industrial tri#unals for the ad*udication of industrial
dispute s relatin to any matters specified a#o&e as in the case of ;a#our
(ourt, or the followin
matters, namely
011 9aes includin the period and mode of payment
021 (ompensatory and other allowances-
0/1 Cours of wor! and rest inter&als-
041 ;ea&e with waes and holidays-
051 'onus, profit sharin, pro&ident fund and ratuity-
081 %hift wor!in otherwise than in accordance with standin orders-
071 (lassification #y rades-
0D1 4ules of discipline-
091 4ationali.ation-
01A1 4etrenchment of wor!men and closure of esta#lishment- and
0111 Any other matter that may #e prescri#ed.
A Tri#unal shall consist of one person only to #e appointed #y the
appropriate 7o&ernment. A person to #e appointed as a "residin :fficer of a
Tri#unal must .#e, or must ha&e #een, a *ude of a hih (ourt- or if he has for a
period of not less than three years, #e a District Iude or on Additional District3
Iude. :nly experienced persons of hih interity can #e appointed as "ro&idin
:fficer of the Tri#unal. It is pro&ided #y %ec.73A041 that the Appropriate
7o&ernment, if thin!s fit, may appoint two persons as assessors to ad&ise the
Tri#unal in the proceedins #efore it.
Industrial Tri#unals shall ha&e the same power &ested in a (i&il (ourt
when tryin a suit, such as6 0a1 enforcin the attendance of any person and
examinin him on oath, 0#1 compellin the production of document and material
o#*ect, 0c1 issuin commissions for the examination of witness and any such
matters as may #e prescri#ed.. .
:ational Tribunals !Sec 76# .
. .
The (entral 7o&ernment may, #y notification in the :fficial 7a.ette,
constitute one or more <ational Industrial Tri#unals for the ad*udication of
industrial disputes which, in the opinion of the (entral 7o&ernment in&ol&e
)uestions of national importance or are of such a nature that industrial
esta#lishments situated in more than one %tate are li!ely to #e interested in, or
affected #y, such disputes.
A <ational Tri#unal shall consist of one person only to #e appointed #y
the (entral 7o&ernment. In order to #e )ualified as a "residin :fficer of a
<ational Tri#unal, a person must #e or must ha&e #een a Iude of a Cih
(ourt, or must ha&e held the office of the (hairman or any other mem#er of the
;a#our Appellate Tri#unal for at least 2 years. The (entral 7o&ernment may
appoint two assessors to ad&ise the <ational Tri#unal, in proceedin #efore it.
.
Dis?uali'ications 'or Presidin* O''iciers o' 9abour &ourts, Tribunals And
:ational Tribunals !Sec"7 4 &#"
<o person shall #e appointed to, or continue in the office of the "residin
:fficer of a ;a#our (ourt, Tri#unal or <ational Tri#unal if 0a1 he is not an
independent person or 0#1 he has attained the ae of sixty fi&e years.
%illin* o' @acancies !Sec" 6#
If a &acancy occurs in the office of the "residin :fficer of a ;a#our
(ourt, Tri#unal or <ational Tri#unal, the appropriate 7o&ernment shall appoint
another person in accordance with the pro&isions of the Act. A &acancy
may arise due to transfer resination or ac)uisition of any dis)ualification as
pro&ided in %ec. 7 3( of the Act.
%inality o' orders constitutin* boards !Sec" 9#
The main o#*ect of enactin %ec. 9 of the Industrial Disputes Act is to ma!e
immune, any order of the appointment made under %ections 5 to 7 of the Act,
from #ein called in )uestion. Therefore, no )uestion can #e raised whether an
appointment was leally and properly made or not. %ec. 9 011 of the Act pro&ides
that no order of the appropriate 7o&ernment or of the (entral 7o&ernment
appointin any person as the (hairman or any other mem#er of the 'oard or
(ourt, or as the "residin officer of a ;a#our (ourt, Tri#unal or <ational Tri#unal
shall #e called in )uestion in any manner on the round of merely of the
existence of any &acancy in, or defect in the constitution of such 'oard or (ourt.
Reference to grievance settlement authorities (Sec. 9-C)
A new (hapter II 3 ' has #een instead #y Industrial Disputes
0Amendment1 Act, 19D2 where#y a new %ec. 9 3 ( has3 #een added 'ut this
(hapter has not #een enforced till now.
According to %ec. 9 3 (6
011 The employer in relation to e&ery industrial esta#lishment in which 5A or
more wor!men are employed or ha&e #een employed on any day in the
precedin 12 months shall pro&ide for a rie&ance settlement authority for
settlement of industrial disputes with an indi&idual wor!man employed in
the esta#lishment in accordance with the rules made+ in this #ehalf under
the Act.
.021 9here an indi&idual dispute connected with an indi&idual wor!man arises in
an esta#lishment referred to in su#. sec. 011 a wor!man or any trade
union cf wor!men of which such wor!man is mem#er, may refer in such
manner as may #e prescri#ed such dispute to 7rie&ance %ettlement
Authority pro&ided for, #y the employer, for settlement.
0/1 The 7rie&ance %ettlement Authority shall follow such procedure and
complete its proceedins within such period as may #e prescri#ed.
041 +<o reference shall #e made under (hapter III with respect to any dispute
referred to in this section unless such dispute has #een referred to the
7rie&ance %ettlement Authorities concerned and the decision of the
7rie&ance %ettlement Authority is not accepta#le to any of the parities to
the dispute.
Powers of ational Tri!unals (Sec."")
1. %u#*ect to any rules that may #e made in this #ehalf, <ational Tri#unal shall
follow such procedure as the ar#itrator or other authority concerned may
thin! fit.
2. The presidin officer of <ational Tri#unal may for the purpose of in)uiry into
any existin or apprehended industrial dispute, after i&in reasona#le
notice, enter the premises occupied #y any esta#lishment to which the
dispute relates.
/. ,&ery national Tri#unal shall ha&e the same powers as are &ested in only
experienced persons of hih interity can #e appointed as presidin offer
of the Tri#una; It is. pro&ided #y %ec. 7 3 A 041 that the Appropriate
7o&ernment of it thin!s fit may appoint two persons as assessors to
ad&ise the Tri#unal in the proceedins #efore It a (i&il (ourt under ("(,
19AD when tryin a suit, in respect of the foJJowin matters, &i..,30a1
enforcin the attendance of any person and examinin him on oath- 0#1
compellin the production of document and material o#*ects- 0c1 Issued
commissions for the examination of witness- 0d1 in respect of such other
matters as may #e prescri#e6 and e&ery #y a 'oard, Court, ;a#our (ourt,
Tri#unal or <ational Tri#unal shall #e deemed to #e a *udicial proceedin
within the meanin of %ec. 19/ arid 22D of the Indian "enal (ode.
041 <ational Tri#unal may, if it so thin!s fit, appoint one or more persons ha&in
special !nowlede of the matter under consideration as assessor or
assessors to ad&ise it in the proceedin #efore it.
051 All the "residin :fficers of a <ational Tri#unal shall #e deemed to #e pu#lic
ser&ants within the meanin of %ec. 21 of the Indian "enal (ode.
081 %u#*ect to any rules made under this Act, the costs of, and incidental to, any
proceedin #efore a <ational Tri#unal shall #e in the discretion of that
<ational Tri#unal, and shall ha&e full power to determine #y and to whom
and to what extent and su#*ect to what conditions, of any, such costs are.
top #e paid, and to i&e all necessary direction for the purpose aforesaid
and such costs may, on application made to the .appropriate 7o&ernment
#y the person entitled, #e reco&ered #y the 7o&ernment in the same
manner as an arrear of land re&enue.
071 ,&ery <ational Tri#unal shall #e deemed to #e a (ourt for the purpose of
%ec. 4DA, 4D2 and 4D4 of the (riminal "rocedure (ode, 194D.
:ote: The procedure and power of different authorities laid down under
%ec. 11 of the Act, are e)ually applica#le in the case of (onciliation
:fficers ? 'oard, (ourt of In)uiry, ;a#our (ourt, And Tri#unals.
Persons on +hom settlement and a+ards are bindin* !Sec" 16#
2or this purpose, settlements are classified into two cataories, namely
0i1 %ettlement arri&ed at otherwise than in the course of conciliation
proceedins, i.e. without the aid of statutory aency- and
0ii1 settlement arri&ed at in the course of conciliation proceedins- ;e. with
the aid of statutory aency.
In the first case, a settlement under %ection 1D011 arri&ed at #y
areement #etween the employer and wor!men otherwise than in the course of
conciliation proceedins, shall #e #indin on the parties to the areement. 'ut
any such settlement- in order to #e #indin must #e sined #y the parties there
to in the manner prescri#ed #y rule and a copy of it must also #e sent the
appropriate 7o&ernment. .
In the second case %ec. 1D 02 and /1 pro&ide that an ar#itration award
which has #ecome enforcea#le shall #e #indin on the parties to the areement
who referred the disI/ute to the ar#itration. This section 1D0/1 pro&ides that
0i1 a settlement arri&ed at in the course of conciliation proceedin under
this Act.
0ii1 an ar#itration award in a case where a notification has #een issued
under su# section 0/3A1 of %ec. 1A3A- or
0iii1 an award of a ;a#our (ourt, Tri#unal or <ational Tri#unal which has
#ecome enforcea#le shall #indin on-
0a1 all parties to the in industrial dispute.
0#1 all other parties summoned to appear in the proceedins as
parties to the. dispute,
0c1 where a party referred to is an employer, his heirs, successors or
assins in respect of the esta#lishment in which the dispute relates.
0d1 where a party referred to in clause 0a1 or 0#1 is composed of
wor!men, all persons who were employed in the esta#lishment or
part of the esta#lishment, as the case may #e, to which the
dispute relates on the date of the dispute and all persons who
su#se)uently #ecome employed in that esta#lishment or part
there of.
&ertain matters to be -ept con'idential !Sec" (1#
This section of the Act. pro&ides that certain matters are to #e !ept
confidential. Therefore, such thins shall not #e included in any report or award
made under the Act. Any information o#tained #y a (onciliation :fficer, 'oard,
(ourt, ;a#our (ourt, Tri#unal, <ational Tri#unal or an Ar#itrator in the course of
any in&estiation on in)uiry, which relates to a Trade $nion on any indi&idual
#usiness 0whether carried on #y a person, firm or company1 which is not
a&aila#le otherwise than throuh the e&idence i&en #efore any such authority,
shall not #e included in any report or award- if the parties concerned or in
)uestion has made a re)uest in writin to treat such information as confidential.
/0%0/0:&0 O% DISP2T0S TO ,OA/DS, &O2/TS O/ T/I,2:A9S
%ection 1A011 of the Industrial Disputes Act.,1947 pro&ides that where the
appropriate 7o&ernment is of the opinion that any industrial dispute exists or
apprehended, it may, at any time6
0a1 refer the dispute to a 'oard of conciliation for promotin a settlement
there of- or
0#1 refer any matter appearin to #e (onnected with or rele&ant to the
dispute to a (ourt for In)uiry- or
0c1 refer the dispute or any matter appearin to #e connected with, or
rele&ant to the dispute to a ;a#our (ourt for ad*udication pro&ided the
dispute relates to any matter specified in the %econd %chedule- or
0d1 refer the dispute or any matter appearin to #e connected with or
rele&ant to the dispute to a Tri#unal for ad*udication, where it relates to
any matter specified in the %econd or Third %chedule., pro&ided that6
0i1 where the dispute relates to any matter specified in the Third
%chedule and is not li!ely to effect more than 1AA wor!men-
the appropriate 7o&ernment may ma!e the reference to a
;a#our (ourt.
0ii1 where the dispute in relation to which the (entral 7o&ernment is
the appropriate 7o&ernment, it shall #e competent for the
7o&ernment to refer the dispute to a ;a#our (ourt ? Tri#unal
constituted #y the %tate 7o&ernment
0iii1 where the dispute relates to a pu#lic utility ser&ice and a notice
of stri!e or loc!out under %ec. 22 has #een the appropriate
7o&ernment shall #e competent to refer the dispute to a
;a#our (ourt or any Industrial Tri#unal, (onstituted #y the
7o&ernment.
$nder %ec.1 A013A1, the (entral 7o&ernment may refer any dispute to a
<ational tri#unal for ad*udication, if it is the opinion that6
0i1 any dispute exists or is appended- and
0ii1 the dispute in&ol&es any )uestion of national importance- or
0iii1 the dispute is of such nature that industrial esta#lishment situated in
more than one %tate are li!ely to #e interested in, or affected #y
such dispute- and
0i&1 the dispute should #e ad*udicated #y <ational Tri#unal 0the reference
to <ational Tri#unal shall #e made #y the (entral 7o&ernment only1.
%ec.1A0/1 of the Act. pro&ides that where an industrial dispute has #een
referred to 'oard, ;a#our (ourt, Tri#unal or <ational Tri#unal, under %ec. 1A of
the Act, the appropriate 7o&ernment may issue an order prohi#itin the
continuance of any stri!e or loc!out in connection with such dispute which may
#e in existence on the date of reference.
%ec.1A081 of the Act. pro&ides that where any reference has #een made
under su#3section 013A1 to a <ational Tri#unal, then notwithstandin anythin
contained in this Act., no ;a#our (ourt or Tri#unal shall ha&e *urisdiction to
ad*udicate dicta upon any matter which is under ad*udication #efore the <ational
Tri#unal.
%ections 1A and 1 :3A are the alternati&e remedies to settle industrial
dispute. :nce the parties ha&e chosen the remedy under %ec.1 :3A, the
7o&ernment cannot refer the same dispute for ad*udication under %ec. 1A. If any
such reference is made, it is in&alid.1
@oluntary /e'erence o' Disputes to Arbitration !Sec" 1;4A#
This section pro&ides that where any industrial dispute exist or is
apprehended, the employer and the wor!man aree to refer the dispute to
ar#itration, they may refer the dispute to ar#itration6 %uch referenKHe #y
areement may #e made at any time #efore the dispute has #een referred under
%ec.1 A a ;a#our (ourt, Tri#unal or <ational Tri#unal. The areement to ma!e a
reference must #e in writin.
%ec. 1A3A013A1 pro&ided that where an ar#itration areement pro&ides for
reference of the dispute to an e&en num#er of, ar#itrators the areement shall
pro&ide for appointment of another person as umpire who shail enter upon the
reference if the ar#itrators are e)ually di&ided in their opinion.
%ec. 1 A3A021 pro&ides that an ar#itration areement referred to in su#3
section 011 shall #e in such form and shall #e sined #y the parties there to in
such a num#er as may #e prescri#ed.
$nder %ec. 1A3A0/1 copy of the ar#itration areement shall #e forwarded to
appropriate 7o&ernment and the (onciliation :fficer, and the appropriate
7o&ernment shall within one month from the date of receipt of such copy pu#lish.
the same in the official 7a.ette.
$nder %ec. 10-A(4) the ar#itrator or ar#itrators shall in&estiate the
dispute and su#mit to the appropriate 7o&ernment the ar#itration award sined
#y the ar#itrator or all ar#itrators as the case may #e.
$nder %ec.043A16 where an industrial dispute has #een referred to
ar#itration and a notification has #een issuDd, the appropriate 7o&ernment may
prohi#it the continuance of any stri!e or loc!out in connection with such dispute.
The appropriate 7o&ernment shall do so #y issuin an order.
%u#3sec.051 pro&ider that nothin in the Ar#itration Act. 194A shall apply to
ar#itration under this section.
An ar#itrator functionin under %ec.1 :3A of the Act is a statutory Tri#unal.
ST/I30S AND 9O&3O2TS I: I:D2ST/IA9 2:ITS
Stri-e is collecti&e stoppae of wor! #y wor!men underta!en in order to
#rin pressure upon the employer. It is a spontaneous and concerted withdrawal
of wor!men from production. A stri!e in usually orani.ed #y common areement
on the part of the wor!ers with a &iew to o#tainin or resistin chane to their
conditions of wor!.
9oc-out is a weapon in the hands of the employer- which is used to cur#
the militant spirit of the wor!ers. In ;oc!3out, an employer shuts down his place
of #usiness as a result of reprisal, or 2% an instrument of coercion or as a mode
of exertin pressure upon the employees with a &iew it dictate his own terms to
them.
%tri!es and loc!outs ha&e now #ecome important factors in the employer 3
employee relations.
Prohibition o' stri-es and loc-outs !Sec" (( and (7#
%ec.22 of the Industrial Disputes Act pro&ides that6
011 <o person employed in a pu#lic utility ser&ice o on stri!e in #reach of
contract6
0a1 without i&in notice of stri!e to the employer within six wee!s
#efore stri!in, or
0#1 within 14 days of i&in notice, or
0c1#efore the expiry of the date of stri!e specified in any such
notice as aforesaid, or
0d1 durin the pendency of any conciliation proceedins and 7 days
after the conclusion of such proceedins.
021 <o employer on any pu#lic utility ser&ice shall loc!out any of his
wor!men
0a1 without i&in them notice of loc!3out as herein after pro&ided
within six wee!s #efore loc!in out- or
0#1 within 14 days of i&in such notice- or
0c1 #efore the expiry of the date of loc!out specified in any such
notice as aforesaid- or
0d1 durin the pendency of any conciliation proceedin #efore
(onciliation :fficer and se&en days after the conclusion of such
proceedins.
Cowe&er, notice of stri!e or loc!out will not #e necessary where there is
already in existence a stri!e or loc!out in the pu#lic utility ser&ice. The employer
in such a case must notify to concerned authority as may #e appointed #y the
appropriate 7o&ernment, of the declaration of a stri!e or loc!out. The notice of
stri!e or loc!out shall #e i&en #y such num#er of persons in the prescri#ed
manner =%ec.2204L51>
eneral !rovisions of strikes and lockouts:
%ec.2/ of the Act pro&ides that, @no wor!men who is employed in any
industrial esta#lishment shall o on stri!e in #reach of contract and on
employer of any such wor!men shall declare a loc!out6
0i1 durin the pendency of conciliation proceedin #efore a 'oard, and 7
days after its conclusion.
0ii1 durin the pendency of proceedin #efore ;a#our (ourt, Tri#unal or
<ational Tri#unal, and 2 months after its conclusion.
0iii1 durin pendency of ar#itration proceedins #efore an arbitrator and
two months after completion of such proceedins, where a notification
has #een issued under %u# sec.0/3A1 of %ec. 1A3A- or
0i&1 durin the period of which a settlement or award is in operation in
respect of the matters co&ered #y such settlement or award.
Ille*al stri-es and 9oc-outs !Sec" (41
%ec. 24 of the Act pro&ides that a stri!e or a loc!out shall #e illeal if it is6
0a1 commenced or declared in contra&ention of %ec. 22 or 2/, and
0#1 continued in contra&ention of the prohi#itory order made #y
appropriate 7o&ernment after the dispute has #een referred under %ec.
1A0/1 or su#3section0 43A1 of %ec.1 01@A of the Act.
Prohibition o' 'inancial aid to ille*al stri-es and loc-outs !Sec" (.#
This section of the Act prohi#its financial aid to illeal. stri!es and
loc!outs.
This section has the followin inradients6 .
011 spendin or applyin money6
021 money spent or applied in direct furtherance or support of an illeal
stri!e,
"unishments 0%ec. 2D1
2or any &iolation of pro&isions of %ec. 25, punishment is imposed #y
%ec. 2D of the Act. Accordin to the pro&ision, e&en a person who is not a
wor!men can #e penali.ed &iolatin the pro&isions of %ec. 25. The effect of
%ections 25 and 2D is the prosecution to support a con&iction for #reach of
%ec.25 must pro&e that6
. 0i1 the stri!e or loc!3out in )uestion was illea;
0ii1 the accused had !nowlede that
0a1 the stri!e or loc!out was iIIeal and
0#1 the money spent or applied #y him was in direct furtherance or
support of a stri!e or loc!out.
0iii1 that the money was actually spent or applied #y the accused.
Cowe&er, assistance to stri!ers in any other from, for example, supplyin
clothes, food, etc. is not prohi#ited under %ec. 25 of the Act.
LAY-OFF AND RETRENCHMENT: COMEN!AT"ON THERE O%
The Industrial Disputes Act, 1947, as oriinally enacted made no pro&ision for
the payment of @;ay3:ff@ or @4etrenchment@ compensation. Therefore, there
were no uniform rule that can #e said to ha&e o#ser&ed #y the ad*udicatin
#odies in the case of payment of compensation for @lay3off@ or @retrenchment@. In
order to o&ercome the situation, the "resident of India promulated the Industrial
Disputes 0Amendment1 :rdinance in :ct., 195/ to the effect from 24th :ct.
195/. The said :rdinance was repealed and replaced #y the Industrial Disputes
0Amendment1 Act, 195/ too! effect from 2/rd Dee em#er 195/. Accordin to this
amendment, %ection 253A to %ection 253I were added #y this Amendment Act of
195/.
Accordin to %ec. 25A 0application of %ections 253( to 25, inclusi&e1 shall
not apply to industrial esta#lishment to which (hapter F3' applies, or 6
0a1 to industrial esta#lishment in which less than 5A wor!men, on an a&erae
per wor!in day ha&e #een employed in the precedin calendar month,
and
0#1 to industrial esta#lishment which are of a seasonal character or in which
wor! is performed only intermittantly.
Thus, where the exemption under %ec 253A applies, the wor!men are not
entitled to lay3off compensation and the Tri#unal has no riht to rant relief on
any fanciful notices of %ocial Iustice.
%ec 25 ' of the Act defines continuous ser&ice. %u#3sec.2 defines
continuous ser&ice for a period of one year or a period of six months (lause 0a1
of %u#3%ection 021 pro&ides that a wor!man. shall #e deemed to ha&e #een in
continuous ser&ice for a year, if
1. he has #een in employment for 12 calendar months- and
2. he actually wor!ed for not less than
0a1 :ne hundred and ninety days in the case of a wor!men
employed #elow round in a mine- and
0#1 Two hundred and forty days in any other case.
The followin conditions must #e fulfilled #y a wor!man to entitle him for a
continuous ser&ice of six months6
011 The wor!man has #een in employment for a period of six calendar
months-
021 %uch wor!man has actually wor!ed for not less than6
0a1 <inety fi&e days in the case of his #ein employed #elow round
in mine, and
0#1 :ne3hundred and twenty days in any other case.
/i*hts o' +or-man laid4O'' 'or compensation !Sec"(.4&#
This section of the Act entitles a wor!man to et compensation from the
employer for the period he is laid off. 9hen the employer is una#le to pro&ide
wor! to his wor!men for reasons #eyond his control, he owns duty to pay lay3off
compensation to such wor!men. 2or a wor!man to #e elii#le to claim lay3off
compensation, he must fulfil the followin conditions6
011 his name must #e #orne on the muster rolls of an industrial
esta#lishment and
021 he must ha&e completed at least one year+s continuous ser&ice 0an
defined in %ec. 253'1
The a#o&e rule is su#*ect to the followin limitations6
011 If a wor!man is laid off for more than 45 days durin any period of 12
months, no compensation shall #e paya#le in respect of any period
of the lay3off after the expiry 45 days, pro&ided these is an
areement #etween the wor!man and the employer to this effect.
021 9here a wor!man is laid off for a period of 45 days durin 12 months.
the employer has a riht to retrench such wor!man at any time after
the expiry of 45 days of lay3off. 9hen an employer decides to
retrench a wor!man he musf comply with the re)uirements of
%ec.252 of the Act
0as stated #elow1.
.
>or-men not entitled to &ompensation in &ertain &ases !Sec" (.40#
This section of the Act pro&ides that a laid off wor!man shall not #e entitled to
compensation6
011 If he refuses to accept alternati&e employment pro&ided that such
alternati&e employment is offered in the same esta#lishment or in
any other esta#lishment #elonin to the same employer in the
same town or &illae within a radius of 5 miles from the
esta#lishment he #elons.
021 If he does not present himself for wor! at the esta#lishment at the
appointed time durin normal wor!in hours at least once a day.
0/1 If the lay3off is due to stri!e or slowin down of production on the part
of wor!men in another part of the same esta#lishment.
&onditions precedent to retrenchment o' +or-men !Sec" (. %#
This section lays down the re)uirements for a &alid retrenchment of an
employed who has #een in continuous ser&ice for not less than one year.
This section prescri#es three conditions for a &alid retrenchment- namely.
0a1 The wor!man should #e i&en one months notice in writin indicatin
the reasons for retrenchment. .
0#1 The wor!man has #een paid, at the time of retrenchment,
compensation e)ui&alent to 15 days a&erae pay for e&ery completed year of
continuous ser&ice or any part thereof in excess of 8 months.
0c1 <otice in the prescri#ed manner is ser&ed on the appropriate
7o&ernment or such authority as may #e specified #y the appropriate
7o&ernment #y notification in the :fficial 7a.ette.
&ompensation to +or-men in case o' trans'er o' underta-in*s !Sec. (. %%#
This section pro&ides that in case of transfer of ownership or manaement of an
underta!in from one employer to another, e&ery wor!man6
0a1 shall, #efore such transfer entitled to notice, and
0#1 shall also #e entitled to compensation in accordance with pro&isions of
%ec. "#-$, as if the wor!man had #een retrenched.
In order to entitle a wor!man compensation under this section, the followin
conditions must #e simultaneously complied with6
011the ser&ice of the wor!man has not #een interrupted #y the transfer,
and
021 terms and conditions of ser&ice to the wor!rnan, after such transfer, are
not in any way less fa&oura#le to the wor!man than those applica#le
immediately #efore the transfer.
:otice to be *i)en o' intention to close do+n any underta-in* !Sec" (.%%A#
Any employer who intends to close down an underta!in shall ser&e, at
least 8A days #efore the date on which the intended closure is to #ecome
effecti&e, in a prescri#ed manner on the appropriate 7o&ernment, statin therein
that notin in this section shall apply to 6
0a1 an underta!in in which 0i1 less than 5A wor!men are employed, or 0ii1
less than fifty wor!man were employed, on an a&erae, per wor!in
day in the precedin 12 months-
0#1 an underta!in set3up for the construction of #uildin, #rides,
roads,
canals. dams or for other construction wor! or pro*ect.
(ompensation to wor!men in the case of closin down of
underta!in 0%ec. 2532221
The purpose of this section is to create a sense of security in a wor!man
that if he stic!s to his wor!, he will not #e thrown away out of his employment in
case of closin down of the underta!in
Procedure 'or /etrenchment
The well reconised principle of retrenchment in industrial law is +first come
last o+ and +last come first o+. This principle has #een incorporated in %ec 2537
of the Act. The protection pro&ided under this section can #e claimed #y a
wor!man on fulfilment of the followin conditions6
011 The wor!man must #e a wor!man within the meanin of %ec. 20D1 of
the Act. 021 The wor!man should #e an Indian (iti.en.
0/1 The wor!man should #e employed in an esta#lishment which is an
industry within the meanin of %ec. 20I1 of the Act.
041 The wor!man should #elon to a particular cateory of wor!men in the
esta#lishment- and
051 There should #e no areement contrary to the principle of +first come
last o+ #etween the employer and wor!man.
/e4employment o' retrenched >or-man !Sec" (.=#
Accordin to this section, when a wor!man has #een retrenched #y
employer on the round of surplus staff. such a wor!man should first #e i&en an
opportunity to *oin ser&ice whene&er an occasion to employ another hand arises.
In order to claim preference in employment under this section, a wor!man must
satisfy the
followin conditions6
011 Ce should ha&e #een retrenched prior to re3employment.
021 Ce should #e a citi.en of India- and
0/1 Ce should ha&e #een retrenched from the same cateory of ser&ice.
Special pro)isions relatin* to lay4o'', retrenchment and closure in
certain establishments6
'y3an amendment made in the year 197D, a new (hapter F3' has #een added
to the Industrial Disputes Act 0%ec. 253E1 .
The pro&ision of this (hapter shall apply to an industrial esta#lishment, not
#ein an esta#lishment of a seasonal character
2or the purpose of this chapter F3', %ec. 253;, defines 0a1 Industrial
esta#lishment means6
0i1 a factory as defined in clause 0m1 of %ec.2 of the 2actories Act. 194D-
0ii1 a mine as defined in clause 0*1 of su#3section 011 of %ec.2 of the Bines
Act, 1952- or
0iii1 a plantation as defined in clause 0f1 of %ec.2 of the "lantations ;a#our
Act, 1951-
#o$i%ition o' 9ay4O'' !Sec" (.4$#
<o wor!man 0other than a +#ad Ii+ wor!man or a casual wor!man1 whose
name is #orne on the muster rolls of an industrial esta#lishment to which this
(hapter F3' applies shall #e laid off #y employer except with the prior
permission of the appropriate 7o&ernment or such authority as may #e specified
#y the 7o&ernment #y notification in official a.ette 0%u#.%ec.11.
9here the wor!man of an industrial esta#lishment #ein a mine, ha&e
#een laid off under su#3section 011 a#o&e, for reasons of fire, flood or excess of
inflamma#le as or explosion, the employer in relation to such esta#lishment,
shall within a period of /A days from the date of such lay3off apply in the
presented manner, to the Appropriate 7o&ernment or the specified authority
0%u# %ec. 0/11
9here an application for permission under %u#. %ee 011 and 0/1 has #een
made to appropriate 7o&ernment after ma!in in)uiry as it thin!s fit and after
#ein heard to the employer, the wor!men concerned and the person interested
in such lay off, rant or refuse to rant, permission. A copy of such order shall #e
communicated to the employer and the wor!men.
&onditions precedent to retrenchment o' >or-men !Sec" (.4:# 6
<o wor!man employed in any industrial esta#lishment, who has #een in
continuous ser&ice for not less than one year under an employer shall #e
retrenched #y the employer, until the wor!man has #een i&en three months
notice in writin indicatin the reasons for retrenchment or the wor!man has
#een paid waes in lien of notice period, if the period of notice has expired.
Procedure 'or closin* do+n an underta-in* !Sec" (.4;# :
An employer who intends to close down an underta!in of an industrial
esta#lishment shall, in the prescri#ed manner, apply to the appropriate
7o&ernment for prior permission 9A days #efore the intended closure is to
#ecome effecti&e, statin the reasons for the intended closure. A copy of such
application shall also #e ser&ed on the representati&e of the wor!men in the
prescri#ed manner 0%u# %ec. 01 11.
:n receipt of application, the appropriate 7o&ernment, ma!es in)uiry as it
thin!s fit and after i&in reasona#le opportunity of #ein hard to the employer,
the wor!man and the persons interested in such closure may rant or refuse to
rant permission, and a copy of such order shall #e ser&ed to the employer and
the wor!men.
Special Pro)isions as to /estartin* o' closed do+n underta-in*
!,e'ore &ommencement o' the Industrial Disputes !Amendment# Act,
197A, !Sec" (.4P#
If the appropriate 7o&ernment is of opinion in respect of any understandin of an
industrial esta#lishment which was closed down #efore the commencement of
Amendment Act, 1978
0a1 that it was closed down otherwise than on account of una&oida#le
circumstance #eyond the control of the employers-
0#1 that there are possi#ilities of restartin the underta!in-
0c1 that it is necessary for the reha#ilitation of the wor!men employed
#efore its closure or for the maintenance of supplies and ser&ices
essential to the life of the community to restart the underta!in- or #oth-
and 0d1 that the restartin of the underta!in will not result in hardship to
the employer in relation to the underta!in.
After it may after i&in an opportunity to such employer and wor!men,
the appropriate 7o&ernment may direct #y order pu#lished in official 7a.ette
that the underta!in shall #e restarted within such time pu#lished in the official
7a.ette, 0not #ein less than one month from the date of order1 as may #e
specified in the order.
Penalty 'or 9ay4O'' and /etrenchment +ith Pre)ious Permission !Sec" (.4
8#
Any employer who contra&enes the pro&ision of %ec. 25 B or %ec. 25 <, shall
#e punisha#le with imprisonment for a term which may extend to one month, or
with fine which may extend to 4s. 1AAA?3, or with #oth.
"enalty for (losure 0%ec. 2 41
Any employer who closes down an underta!in without complyin with
the pro&isions of su#3section 011 of %ec. 253A shall #e permissi#le with
imprisonment for a term which may extend to six months, o0with fine which may
extend to 4s. 5AAA? 3, or with #oth.
%imilarly, any employer who contra&enes an order refusin to rant
permission to close down an underta!in under su#3section 021 of %ec. "#-0 or a
direction i&en under %ec. 253", shall #e permissi#le with imprisonment for a
term which may extend to 4s. 5AAA?3, or with #oth. 9here the contra&ention
continuous further, with a further which may extend to 4s. 2AAA?3 for e&ery day
durin the contra&ention continues after the con&iction.
<o employer or wor!men or a Trade $nion, whether reistered under Trade
$nion+s Act, 1928, or not, shall commit any unfair la#our practice 0%ec. 253T1
Any person who commits any unfair la#our practice shall #e punisha#le
with imprisonment for a term which may extend to six months or with fine which
may extend to 4s. 1AAA?3 or with #oth.
2:%AI/ 9A,O2/ P/A&TI&0S
<o employer or wor!men or a Trade $nion, whether reistered under Trade
$nion+s Act, 1928, or not, shall commit any unfair la#our practice 0%ec. 253T1
Any person who commits any unfair la#our practice shall #e punisha#le
with imprisonment for a term which may extend to six months or with fine which
may extend to 4s. 1AAA?3 or with #oth.
2n'air labour practices on the Part o' 0mployers and Trade 2nions o'
0mployers !as per :e+ Schedule @ added +ith Industrial Disputes
!Amendment# Act, 196(#"
As defined in %chedule F, unfair trade practices are6
1. To interfere with, restrain from, or coerce, wor!men in the exercise of
their rihts to oranise from, *oin or assist a trade union or to enae
in concerted acti&ities for the purposes of collecti&e #arainin or
other mutual aid or protection, that is to say

1A. To recruit wor!men durin a stri!e which is not an illeal stri!e.
11. 2ailure to implement award, settlement or areement.
12. To indule in acts of force or &iolence.
1/. To refuse to #arain collecti&ely in ood faith with the reconised
trade unions.
2n'air labour Practices on the part o' >or-men and Trade 2nions o'
>or-men !as per :e+ Schedule @ added +ith Industrial Disputes
!Amendment# Act, 196(.
They include the followin6
1. To ad&ise or acti&ely support or instiate any stri!e deemed to #e illeal
under this Act.
2. To coerce wor!men in the exercise of their riht to self3oranisation or
to *oin a trade union or restrain from *oinin any trade union, such as
6
0a1 for a trade union or its mem#ers to pic!etin in such a manner
that non3stri!in wor!men are physically de#arred from enterin
the wor! places-
0#1 to indule in acts of force or &iolence or to hold out threats of
intimidation in connection with a stri!e aainst non3stri!in
wor!men or aainst manaerial staff.
/. 2or a reconised union to refuse to #arain in ood faith ..&ith the
employer.
4. To indule in coerci&e acti&ities aainst certification of a #arainin
representati&e.
5. To stae demonstrations at the residence of the employers or the
manaerial staff mem#ers.
8. To incite or indule in wilful damae to employer+s property connected
with the industry, etc.
@ictimiBation
Fictimi.ation means one of two thins. :ne is when the wor!men
concerned is innocent and yet he is punished #ecause he has in some way
displeased the employer. 2or example, #y #ein an acti&e mem#er of the union
of wor!men who were actin pre*udicially to the interests of the employer1. The
second instance is where an employee has committed an offence #ut is i&en a
punishment )uite out of prosportion to the ra&ity of the offence, simply
#ecause he has incurred the displeasure of the employer, or where the
punishment is shoc!inly disproportion to the misconduct.
P0:A9TI0S A:D $IS&099A:0O2S P/O@ISIO:S
"enalty for illeal stri!es and loc!outs 0%ec. 281
This section prescri#es penalty imposed on any wor!man who continues or
otherwise acts in furtherance of a stri!e which is illeal under this Act. Any
wor!man found uilty of participatin in an illeal stri!e shall #e punisha#le with
imprisonment for a term which may extend to one month or with a maximum fine
of 5A?3, or with #oth.
.In the case of employer, su# section 021 of %ec. 28 pro&ides that the
employer shall #e punisha#le with imprisonment extendin to one month or with
a maximum fine of 4s. 1AAA?3, or with #oth, if6
011 such employer commences, continues or otherwise- acts in
furtherance
of loc!3out- and
021 such loc!3out is illeal under the Act.
%enalt& for instigation, etc.('ec. "():
This section ma!es the followin acts punisha#le6
011 Instiation or incitement to others to ta!e part in an illeal stri!e or
loc!out-
021 :therwise actin in furtherance of a stri!e or loc!out which is illeal
under the Act.
Any person, other then employer and wor!men, who has no personal
interest in a dispute, instiate or incitin of an illeal stri!e or loc!out is more
se&erely punisha#le under the Act. There must #e somethin tani#le in
e&idence to show that the persons are responsi#le for instiatin or incitin the
stri!e.
Penalty 'or *i)in* %inancial Aid to ille*al stri-e and loc-out !Sec" (6#
Any person who !nowinly extends or applies any money in direct
furtherance or support of any illeal stri!e shall #e punisha#le under this
section. "unishment may extend to six months imprisonment, or 4s. 1AAA?3 as
fine, or with #oth.
Penalty 'or breach o' settlement o' a+ard !Sec" (9#
In order to #e penalised a person under this section, the followin facts
must be !roved:
()) An award or settlement was in operation at the time of #reach-
021 %uch award or settlement must #e &alid,
0/1The award or settlement must #e #indin on the accused,
041The accused must #e responsi#le for committin #reach of such award or
settlement.
051 The appropriate 7o&ernment must ha&e made complaint reardin the
#reach.
If these re)uirements are cumulati&ely fulfilled the accused shall #e
punisha#le with imprisonment extendin to 8 months or with fine or with #oth. If
the #reach is continuin a further fine which may extend to two hundred rupees
for e&ery day durin which the #reach continues after the con&iction for the first
#reach.
Penalty 'or disclosin* con'idential In'ormation !Sec" 7;#
Any person who discloses any information in contra&ention of %ec. 21
0confidential matters1 shall #e penalised under %ec. /A of the Act. "unishment
pro&ided is imprisonment extendin to 8 months or fine upto 4s. 1AAA?3, or with
#oth. 2or &alid exercise of power under this section, the followin conditions must
#e satisfied6
011 A complaint must ha&e #een made #y or on #ehalf of 0a1 the Trade
$nion, or 0#1 the indi&idual mem#ers affected. 021 (omplaint should #e
made to the appropriate 7o&ernment. 0/1 It should #e aainst any person
who wilfully disclose any such information and the disclosure must #e in
contra&ention of the pro&isions of %ec.21.
Penalty 'or closure +ithout notice !Sec"7D4A#
Any employer who closes down any underta!in without complyin with
pro&isions of %ec. 25 22A shall #e punisha#le with imprisonment for a term
which may extend to six months or with fine, which may extend to 4s. 5AAA?3, or
with #oth.
Penalty 'or other o''ences !Sec" 71#
This section pro&ides that at any employer who contra&ene the pro&isions
of %ec. // shall #e punisha#le with imprisonment for a term which may extend to
six months or with fine which may extend to 4s. )000*-, or with #oth 0su#. %ec.11
A (riminal (ourt has *urisdiction to try any employer for &iolation of %ec.
// these two sections /1 and // are intended to protect the riht of wor!men
pendin industrial dispute and for that purpose the employer is prohi#ited from
doin anythin to the pre*udice of wor!men without express permission or
appro&al of the authorities #efore whom a reference is pendin. .
0%ec.// ensures aainst &ictimi.ation of wor!men #y the
employer1.
O''ence by companies etc" !sec"7(#"
This section pro&ides that where a person committin an offence under
this Act. is a company, or other #ody corporate or an association of persons
0whether incorporated or not1 e&ery director manaer, secretary, aent or other
officer or person concerned with manaement thereof shall, that the offence was
committed without his !nowlede or consent, #e deemed to #e uilty of such
offence.
&onditions o' ser)ice, etc" to remain unchan*ed !Sec" 77#
The purpose of this section is to maintain status )uo durin the pendin
of certain proceedin under this Act. This section applies durin the pendency
of the followin proceedins6
0a1 conciliation proceedins #efore a (onciliation :fficer or 'oard.
0#1 any proceedin #efore an Ar#itrator- and
0c1 any proceedin #efore ;a#our (ourt, Tri#unal or <ational Tri#unal.
%ec. //0/1+of the Act deals with the riht of protected wor!man. The
employer shall not ta!e the followin action aainst a @protected wor!man@ in
reard to any matter connected with the pendin dispute6
Special pro)ision 'or adudication as to +hether conditions o' ser)ice etc"
chan*ed durin* the pendency o' proceedin*s !Sec"774A#"
9here an employer contra&enes the pro&isions of %ec. // du rin the
pendency of proceedins #efore a (onciliation :fficer, 'oard, an
Ar#itrator, a ;a#our (ourt, Tri#unal or <ational Tri#unal, an employee
arie&ed #y such contra&ention may ma!e compliant in writin, in the
prescri#ed manner, to such authority #efore it the matter is pendin,
The o#*ect of %ec. // and //3A is to protect wor!men aainst
&ictimi.ation #y the employer.
/eco)ery o' money due 'rom an employer !Sec" 774&#
This section deals with the proceedin for reco&ery of money due to a
wor!man from an employer under a settlement or an award or under the
pro&isions of (hapter FA or F'
The application for reco&ery of money due may #e made to the
appropriate 7o&ernment. If the 7o&ernment is satisfied that the claim in
enuine it shall issue a certificate for that amount to the District (ollector, who
shall reco&er the amount, as shown in the reco&ery certificate as an of land
re&enue.
,&ery application for reco&ery shall #e made within one year from the
date on which the money #ecomes due to the wor!man from the employer.
Cowe&er, the appropriate 7o&ernment may consider the application which was
presented e&en after one year if it is satisfied that the applicant had sufficient
reason for not ma!in the application within the period of one year.
&o*niBance o' o''ences !Sec" 74#"
This section pro&ides that a (ourt shall ta!e coni.ance of any offence
punisha#le under this Act or of the a#atement of any such offence, if a
compliant to that effect is made either6
0i1 #y the appropriate 7o&ernment, or
0ii1 under the authority of the appropriate 7o&ernment. =su# sec. 011>
%u# section 021, pro&ides that any (ourt inferior to the (ourt of
Betropolitan
Baistrate or a Iudicial Baistrate of tha first class shall not try any offence
punisha#le under this Act.
Protection o' persons !Sec" 7.#"
<o person refusin to ta!e part or to continue to ta!e part in any stri!e or
loc!out which is illeal under the Act shall, #y reason of such refusal or #y
reason of any action ta!en #y him under this section, #e su#*ect to expulsion
from any trade or society, or to any fine or penalty, or to depri&ation of any
riht or #enefit to which he or his leal representati&es would otherwise #e
entitled, either directly or indirectly,
. under any disa#ility or at any disad&antae as compared with other mem#ers
of the $nion or %ociety, anythin to the contrary in the rules of a trade union or
society notwithstandin.
This section further pro&ides that nothin ill the rules of a Trade $nion or
%ociety re)uirin the settlement of disputes shall apply to any proceedin for
enforcin any riht or exemption secured #y this section and in any such
proceedin, the (i&il (ourt may, in lieu orderin a person who has #een
expelled from mem#ership of a Trade $nion or %ociety to #e restored to
mem#ership, order that he #e paid out of the Trade $nion funds such sum #y
way of compensation or damaes as that (ourt thin!s fit.
/epresentation o' parties !Sec" 7A#
Accordin to su# section 011, a wor!man who is a party to a dispute shall #e
entitled to #e represented in any proceedin under this Act #y6
0a1 any mem#er of the executi&e or other office #earer of a reistered Trade
$nion of which he is a mem#er-
0#1 any mem#er of the executi&e or officer #earer of a 2ederation of Trade
$nion to which the Trade $nion is affiliated-
0c1 where the wor!man is not a mem#er of any Trade $nion, #y any mem#er
of executi&e or other office #earer of any Trade $nion connected with it
or #y any wor!man employed in, or the industry in which the wor!er is
employed and authori.ed in such manner as may #e prescri#ed.
In the opinion of the appropriate 7o&ernment, any difficulty or dou#t
arises as to interpretation of any pro&ision of the award, or settlement, it may
refer the matter to such ;a#our (ourt ? Tri#unal?<ational Tri#unal- as it may
thin! fit 0%ec /83A1.
The decision of the ;a#our (ourt ITribunal1 <ational Tri#unal shall #e
final and #indin on all the parties.
"ower to exempt from the pro&isions of the Act 0%ec /83'1 "ara 9here the
appropriate 7o&ernment is satisfied in relation to any industrial esta#lishment or
underta!in carried on #y a department of the 7o&ernment that ade)uate
pro&isions exist for the in&estiations and settlement of industrial disputes- such
class of esta#lishments or underta!in, it may, #y notification in the official
7a.ette, exempt, conditionally or unconditionally such esta#lishments, or
underta!ins from all or any of the pro&isions of this Act.
Protection o' action ta-en under the Act !Sec" 77#
<o suit, prosecution or other leal proceedin shall exist aainst any
person for anythin done in ood faith or intended to #e done in pursuance of
this Act, or any rule made there under.
Po+er to ma-e rules !Sec" 76#
The appropriate 7o&ernment may ma!e rules for the purpose of i&in
effect to the pro&isions of this Act. %uch rules may pro&ide for all or any of the
followin matters- namely
0a1 the powers and procedure of (onciliation :fficers, 'oards, (ourt,
;a#our (ourts, Tri#unals or <ational Tri#unal, includin rules as to
the summonin
of witness, the production of document concerned.
0aa1 the form of ar#itration areement.
0aaa1 the appointment of assessors in proceedin under this Act,
0a#1 the constitution of 7rie&ance %ettlement Authorities.
0#1 the constitution and functions of, and the fillin of &acancies in 9or!s
(ommittees, and the procedure to #e followed #y it.
0c1 the allowances admissi#le to mem#ers of (ourts and 'oards and
"residin :fficers of la#our (ourts, Tri#unals and <ational Tri#unal.
0d1 the ministerial esta#lishment which may #e allotted to a (ourt, 'oard,
Tri#unal or <ational Tri#unal.
0e1 the manner in which and the persons #y and to whom notice of stri!e
or loc!out may #e i&en and mode of communication.
0f1 the conditions su#*ect to which parties may #e represented #y leal
practitioners in proceedin under this Act #efore a (ourt, ;a#our (ourt,
Tri#unal or <ational Tri#unal
01 any other matter which is to #e or may #e prescri#ed.
Dele*ation o' po+ers !Sec" 79#
The appropriate 7o&ernment may #y notification in the official 7a.ette,
direct that any power exercisa#le #y it under the Act or rules made there under,
shall #e exercisa#le #y6
0a1 #y such officer or authority su#ordinate to the (entral 7o&ernment,
0where the appropriate 7o&ernment is the (entral 7o&ernment1 or
#y the %tate 7o&ernment or #y such officer or authority su#ordinate
to the state 7o&ernment as may #e specified in the notification- and
0#1 where the appropriate 7o&ernment is a %tate 7o&ernment, #y such
officer or authority su#ordinate to the state 7o&ernment, as may #e
specified in the notification.
Po+er to amend schedules !Sec" 4;#
If the appropriate 7o&ernment or the (entral 7o&ernment feels it
necessary in the pu#lic interest, can amend the schedule #y notification issued in
the official 7a.ette. The first- second or third schedule can #e amended.
&A2S0S &O:S0820:&0S A:D S0TT90$0:T O%
I:D2ST/IA9 DISP2T0S
Industrial Disputes Act pro&ides for a machinery for *ust and e)uita#le
settlement of Industrial disputes #y ad*udication, neotiation and conciliation. It
promotes measures for securin and preser&in amity and ood relations
#etween employer and wor!men. It helps pre&ention of illeal stri!es and
loc!outs, and pro&ides pro&ision
for relief to wor!men in the case of layoff and retrenchment. It promotes a #ase
or collecti&e #arainin also.
&auses of Industrial Disputes
The pro#lem of industrial unrest is inherent in the industrial system. The
main features of industrial wor! anywhere are that 0a1 it in&ol&es di&ision of
la#our- 0#1 it is a roup acti&ity- 0c1 it is carried under control. 'roadly spea!in,
the causes of industrial disputes can #e classified as6
1 . ,conomic causes
2. Banaement causes, and
/. "olitical causes
A #rief description of each, is i&en #elow6
). 0conomic causes
,conomic causes include )uestions pertainin to waes, #onus and
allowances, retrenchment of wor!men #y the employer retionalisation and
automation, faulty retrenchment system, lea&e and so on. ;ow waes,
irrespecti&e of risin prices, demand for a rise in D.A., intolera#le wor!in and
li&in conditions, issues pertainin to hours of wor!, etc. are some other
economic causes that pro&o!ed a num#er of stri!es in India.
The wor!er factors responsi#le for industrial unrest ha&e #een6 011 Inter
union ri&alries, 021 ,conomic and political en&ironment that exercise ad&erse
effects on wor!ers attitudes, and 0/1 Indiscipline amonst wor!ers.
(" $ana*erial causes
%ome of the causes of discontent are inherent in the industrial system,
itself
such as6
011 9or!ers do not et any opportunity for self3expression- or
021 Their social needs are not fulfilled- that is. the position of wor!ers within in
informal )roups formed in *ndustrial underta!ins and pro#lems of conflict within
the roups may not #e ta!en into account.
0/1;ac! of communication on one hand, #etween the wor!ers and manaement
may turn petty )uarrels into industrial unrest and on the other, the pro#lem of
discipline in industrial units may assume serious dimensions.
The other manaerial factors responsi#le for industrial unrest ha&e #een as
1. Bental inertia on the part of manaement and la#our.
2. Banaement+s eneral attitude of hatred towards their wor!ers,
/..;ac! of competence on the super&isor and other manaers in human
relations.
4..Banaement+s desire to pay comparati&ely lesser amount of #onus or
dearness allowance aainst the desire of wor!men.
5. .,fforts to introduce modernisation without prior or appropriate en&ironment.
8. ,xcessi&e wor! load and inade)uate welfare facilities.
7. Defecti&e policy of lay3off.
D. Denial of the wor!ers riht to reconi.e union.
9. $nfair practices li!e &ictimi.ation or termination of ser&ices without
assinin any reasons.
1A.;ac! of definite wae policy and sta#ili.ation of prices.
12. ;ac! of a proper policy of union reconition.
1/.Denial of wor!er+s riht to oranise, etc.
Political causes
Industrial disputes are pertly political also. %ome important political stri!es I
orani.ed #y industrial wor!ers in India. "rior to independence, as early , there
was a mass stri!e in Bum#ai aainst the sentence of imprisonment stri!es
occurred on account of actions ta!en aainst, for participatin in
demonstrations, trial of political leaders, etc. After the independence also, some
stir!es ha&e occurred owin to aitation+s of political parties on )uestions li!e
re3oranisation ation of %tates, <ational ;anuae, etc. "ercentae distri#ution
of industrial disputes #y causes as pu#lished #y the Binistry of ;a#our,
ImpactC0''ectC&onse?uences o' Industrial Disputes
The conse)uences of Industrial disputes are many. A #rief description is i&en
011 Disturb the economic, social and political li'e o' a country: 9hen la#our
and e)uipment in the whole or any part of an industry are rendered idle #y
stri!e or loc!out, national di&idend suffers in a way that in*ures economic
welfare.
;oss of :utput6
0219oss o' Output 6 ;oss of output in an industry which is directly affected #y a
dispute, #ut other industries are also affected ad&ersely, as stoppae of
wor! in one industry chec!s acti&ity in other industries too.
0/1 Decline in the demand 'or *oods and ser)ices6 %tri!es reduces the
demand for the oods that other industries ma!e, if the industry in which
stoppae has occured is one that furnishes raw materials semi3finished
oods or ser&ice larely used in the products of other industries.
041 9astin* loss to the +or-ers: There is a lastin in*ury to the wor!ers in the
form of wor! #ein interrupted due to the stri!es which in&ol&es a loss of
time which cannot #e replaced. The waes are lost and the wor!ers can
least afford to lose them specially when the a&erae earnin of a wor!er is
not &ery hih.
051 Increase in indebtedness 6 This increases the inde#tedness amon the
wor!ers and not only the old de#ts #ecome hea&ier #ut fresh de#ts may
also #e incurred.
081 9oss o' health o' 'amily members 6 The wor!ers and their family mem#ers
also suffer from loss of health due to mental warrious resultin from loss of
waes.
071 Problem to consumers 6 %tri!es and loc!outs create pro#lem to consumers
also. Articles of their re)uirements are not a&aila#le in time, and the prices
of such articles reach hih due to #lac! mar!etin acti&ities. ..
0D1 9oss to the mana*ementCemployer 6 9hen wor!ers stop wor!in, the plant
and machinery remain idle. The fixed express are to #orne #y the employer
e&en when the production stops. This way the employer suffers from reat
loss.
091 ,ad e''ect on labour relations: %tri!es and loc!outs #rin #ad effects on
industrial relations. 9ith the result the wor!men and the employer always
#e in mental tension.
01A1 Obstruction to economic *ro+th: %tri!es creates many !inds of
&iolence which o#struct the rowth of economy.

P/0@0:TIO: A:D S0TT90$0:T O% I:D2ST/IA9 DISP2T0S:
$achinery 'or pre)ention o' disputes in India: The fre)uency with which the
stri!es too! place and the serious industrial and social dislocation which they
cause has underlined the importance of preser&in industrial peace. The
methods for pre&ention of industrial disputes include #roadly all such measures
which directly or indirectly contri#ute towards impro&ement of Industrial relations.
The pre&ention methods, therefore co&er the entire field of relations #etween
industry and la#our which are descri#ed #elow6
011 %tron Trade $nion
021 "rofit %harin and (o3partnership
0/1 Ioint (onsultation
041 Inrlustrial ,mployment %tandin :rders
051 (ode of Discipline
081 (ollecti&e 'arainin
071 9or!s (ommittees
0D1 9or!ers "articipation in Banaement
091 Tripartite 'odies? Bachinery
01A1 ;a#our9elfare :fficer
011 1 9ae 'oard
1" Stron* Trade 2nion: A stron trade union responsi#le to the welfare of
wor!ers must wor! to protect and promote the interests of wor!ers and the
condition of their employment. It must pro&ide ad&ice and information to
manaement on personnel policies and practices. $nions also impress upon
wor!ers the need to exercise restraint in the use of their rihts. $nions assist
employers in maintainin discipline and in increasin producti&ity. $nions should
act as a lin! #etween employers and wor!ers so as to de&elop mutual
understandin and co orporation #etween the two sides. As a matter of fact a
trade union is the most swita#le and most effecti&e aency to conduct #arainin
stron.
(" Pro'it Sharin* and &o4partnership6 0a1 "rofit3%harin6 This method helps for
maintenance of ood industrial relations. "rofit sharin means that the employer
i&es to the wor!ers a portion of profit of the #usiness, in addition to waes. It is
usually #ased on an areement #etween the employer and the wor!ers.
Importance o' pro'it sharin*:
011 The award to la#our of a share of profits would create psycholoical
conditions fa&oura#le to the restoration of industrial peace.
021 "rofit sharin is li!ely to stronthen the common interest of la#our and
capital and there#y increase the producti&e efficiency of the wor!ers.
0/1 "rofit sharin e@nhances social *ustice so far as la#our, a primary
factor
of production, that produces profits, is allowed to share in them.
041 "rotit sharin ma!es the wor!er responsi#le, creates a feelin of
identity
with #usiness and settles all disputes peacefully.
9imitations o' pro'it sharin*:
011 Althouh the purpose of profit sharin is to lay foundation for
harmonious industrial relations, they often fail to ain the confidence
of the wor!er since the amount of profits accruin to the wor!ers has
not #een &ery
lare. The wor!ers suspect honesty and ood faith on the part of the
employer in distri#ution of profits.
021 There is possi#ility of conflicts since the employees contend that the
increased profits are due to their efforts.
0/1 The wor!ers often fear that employers may use the profit3sharin
scheme to wea!en the trade unions and to ma!e the wor!ers
dependent upon them.
041 "rofit sharin may ma!e the wor!ers sluish and therefore,
production instead of #ein aumented, may actually diminish.
'roadly spea!in- until a climate of mutual trust and confidence is created
#etween the two sides, the success of profit sharin schemes in industry so far
as industrial peace is concerned, seems dou#tful.
!b# &o4partnership:
(o3partnership has come to #e a applied to schemes which include a system of
profit sharin as well as control in the manaement. It is necessary that in order
to ac)uire control of #usiness, the wor!ers may other ac)uire share3capital
ainin there#y the rihts and responsi#ility of share3holders or may form a co3
partnership committee ha&in a &oice in internal manaement of the #usiness.
%o far as India is concerned, ac)uirin of share capital or *oinin in a co3
partnership committee #y wor!ers seems difficult #ecause of their law earnins
and #ac!ward in education. Therefore, in the context of Indian conditions, it is
proper to lay emphasis on wor!ers participation in manaement.
!7# Doint consultation:
The industrial democracy necessitates *oint consultation in industry
#etween employerG and wor!ers to eliminate most of the pro#lems faced #y
them. Ioint consultation in&ol&es a reular and continuous relationship #etween
wor!ers and manaement, and therefore, pre3supposes the willin acceptance
#y manaement of the participation of wor!ers representati&es in discussin
(ommon pro#lems of interest to the enterprise. 9hile full *oint consultation can
#e expected only after the esta#lishment of a collecti&e #arainin relationship,
mutual consultation at the plant le&el often helps to #rin the parties toether
and to train them in the discussion of common pro#lems. Thus, there is
tremendous scope of reducin industrial tension and impro&in producti&ity
throuh *oint consultation in industry.
The system of *oint consultation in India could not de&elop ade)uently
#efore independence mainly #ecause of the illiteracy, miratory character and
lac! of proper oranisation of wor!ers. After )+4(, with the initiation of 2i&e Mear
"lans reater emphasis was laid on more production and wor!ers interests
#ean to attract reater attention. The Industrial Disputes Act, 1947 pro&ided for
esta#lishment of +wor!s committees+ at the plant le&el. <ow the consultati&e
machinery in this country exists almost at e&ery le&els i.e. underta!in, industry,
%tate and <ational le&els. At the underta!in le&el, there are Ioint (ommittees
or Ioint (ouncils. At the industry le&el, there are 9ae 'oards and Industrial
(ommittees to deal with specific pro#lems of wor!ers that arose from time to
time in particular industries. At the %tate ;e&el, the ;a#our Ad&isory 'oard
functions, and at the national le&el there are Indian ;a#our (ommittee, etc.
The functions of Ioint (onsultati&e Bachinery in India ha&e #een the
pre&ention of disputes, reduction in mutual differences and friction, and creation
of a proper wor! climate in industry.
4. Industrial 0mployment Standin* Orders: This is another
constructi&e step towards the pre&ention of industrial disputes which determine
the terms and conditions of industrial employment. ,&ery wor!er should ha&e
the !nowlede a#out the terms and conditions in which he has #een employed.
Ce is also expected to !now the rules of discipline that is supposed to #e
followed #y him. This pro#lem is sol&ed #y +%tandin :rders+ in which terms and
conditions for employers and employees are prescri#ed. The pro&ision for
+%tandin orders was for the first time, made in the 'om#ay Industrial Disputes
Act, 19/D. Thereafter, in order to define the condition of employment and to
ma!e them !nown to the wor!men, the 7o&ernment enacted the Industrial
,mployment 0%tandin :rders1 Act, )+4,. This Act applies to e&ery industrial
esta#lishment wherein 1AA or more wor!ers are employed or were employed on
any day of the precedin 12 months.
5. &ode o' Discipline: The Indian ;a#our (onference at its 15th %ession
in 1957 e&ol&ed a +(ode of Industrial Discipline+. The (ode &oluntarily #inds the
employers and wor!ers to settle all rie&ances and disputes #y mutual
neotiations, conciliation and &oluntary ar#itration. The main features of this
(ode include the followin.
011 'oth, employers and employees should reconise the rihts and
responsi#ilities of each other.
021 <either party will ha&e recourse to coercion, intimidation, litiation and
&ictimisation, #ut will settle all disputes throuh the existin machinery
for the settlement of industrial disputes.
0/1 A mutually areed procedure will #e set up and #oth the parties will
a#ide #y it without ta!in ar#itrary action.
A" &ollecti)e ,ar*ainin*: It is a form of *oint consultation, and a process
in which the representati&e of the employer and of the employees meet and
attempt to neotiate a contract o&ernin the employer3employees union
relationship. It in&ol&es discussion and neotiation #etween the two roups as to
the terms and conditions of employment. The main o#*ect of collecti&e #arainin
is to protect the interests of wor!ers throuh collecti&e action and #y pre&entin
unilateral action on the part of the employer. It promotes industrial democracy.
7" >or-s committees: 9or!s committees are the most suita#le aency
for pre&ention of industrial disputes. In most of the countries li!e India, wor!s
committees are re)uired to the esta#lished throuh leislation.
Accordin to %ec. / of the Industrial Disputes Act )+4(, in the case of an
industrial esta#lishment in which 1AA or more wor!men are employed or ha&e
#een
employed on any day in the precedin 12 months, the appropriate 7o&ernment
may, #y eneral or special order re)uire the employer to constitute a 9or!s
(ommittee consistin of representati&es of employers and wor!er enaed in
the esta#lishment, the num#er of representati&es of wor!men not #ein less
than that of the employers representati&es, to #e chosen in consultation with
their trade union, if any.
The duties of the 9or!s (ommittee are to promote measures for securin
and preser&in amity and ood relations #etween the employer and wor!men
and to comment upon matters of their interest, and to endea&or to compose any
material difference of opinion in respect of such matters.
D. 9or!ers !artici!ation in manaement6 These councils aim at ena#lin
the wor!ers to participate in manaement, help them to understand the
pro#lems and difficulties of the industry concerned and #rin a#out #etter
relationship #etween the manaement and la#our.
9" Tripartite ,odiesC$achinery6 %e&eral tripartite #odies ha&e #een
constituted at (entral and %tate le&els. The Indian ;a#our (onference, %tandin
;a#our (ommittees, 9ae 'ounds and Industrial (ommittees operate at the
(entre. At the %tate ;e&el, %tate ;a#our Ad&isory 'ounds ha&e #een set up. All
these #odies play important role in reachin at areements on &arious la#our
matters. The recommendations of these #odies are ad&isory in nature #ut carry
a reat weiht on employers, trade unions and the 7o&ernment. All these
#odies constitute the consultati&e machinery for the pri&ate sector.
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