APPLICABILITY OF THE ACT

1. The act came in to force on the 1

st
day
of April 1947
2. The act extends to the whole of India.

SECTIONS & SCHEDULES
40 sections
5 schedules
IMPORTANT DEFINITION
Appropriate Government [Sec.2(a)]
Industry [Sec.2(j)]
Industrial Dispute [Sec.2(k)]
Wages [Sec.2(rr)]
Workman [Sec.2(s)]

STRIKE
Sec. 2(q) defines a strike as
follows:
i. The cessation of work by a body of
persons employed in any industry acting
in combination ; or
ii. A concerted refusal, or a refusal under a
common understanding, of any number
of persons who are, or have been, so
employed to continue to work or accept
employment.


LOCK-OUT
A lock-out means [Sec.2(l)]
the closing of a place of employment; or
the suspension of work; or
the refusal by an employer to continue to employ any
number of persons employed by him.

It means the closure of the place of
business and not closure of business
itself.
PROHIBITION OF STRIKES &
LOCKOUTS
No person in a public utility service shall go on
strike in breach of contract or lock-out any of his
workmen [Sec.22(1)(2)] :-
a) Without giving the notice and after 6 weeks
of notice
b) Within 14days of giving such notice
c) Before the date specified in such notice
d) Conciliation going on before a Board of
Conciliation & 7 days thereafter.
(Cont)
3) The notice shall not be necessary where there
is already in existence a strike or lock-out in
the public utility service.
4) The notice shall be given in such manner as
may be prescribed.
5) The employer shall report to the appropriate
govt. or any legal authority regarding the no.
of notices that he received or gave within 5
days
(Cont.)
No workman or employer shall go on strike or
declare a lockout [Sec.23] :
a) During adjudication before a Board and 7days
thereafter.
b) During adjudication before a labour Court,
Tribunal & National Tribunal and 2 months
thereafter.
c) During arbitration before an Arbitrator & 2
months thereafter.
d) A settlement or an award is in operation
ILLEGAL STRIKES/LOCKOUTS
In public Utility Services
[Sec.22(1)&(2),23,30,19]
Without giving 14 days notice
Commenced after 42 days of notice
Prior to the date indicated in the notice.
During the pendency of proceedings
During the period when a settlement or award
is in operation on same matters.

(Cont)
In non public utility services [Sec.23,20,19]
In breach of contract
During the pendency of proceedings
During the settlement or award is in operation

IN BOTH THE STRIKE/LOCKOUT WILL
BE ILLIGAL IF CONTINUED AFTER
GOVT. BANNING. [Sec.10(4A),24]
PENALTY
Penalty for illegal strikes (Sec 26):
Imprisonment for a term which may extend to 1 month, or
with fine which may extend to Rs. 50, or with both.
Penalty for instigation of illegal strikes (sec. 27):
Imprisonment for a term up to 6 moths., or a fine up to Rs.
1000, or with both.
Penalty for giving financial aid to illegal strikes (sec. 28):
Imprisonment for a term up to 6 moths., or a fine up to Rs.
1000, or with both.
Penalty for illegal lock-outs
Imprisonment for a term extending to 1 month or with fine up
to Rs. 1000 or with both.

LAY-OFF
Definition [Sec.2 (kkk)]
Lay-off means the failure, refusal or inability of
an employer on account of shortage of coal,
power or raw materials or the accumulation of
stocks or the break-down of machinery or natural
calamity or for any other connected reason to give
employment to a workman whose name is borne
on the muster rolls of his industrial establishment
and who has not been retrenched

LAY OFF COMPENSATION
50% of basic + dearness allowance. [Sec. 25C]
In case, permission is not obtain/refused, full wages.
[Sec. 25M(8)]
If the employee refuse to accept alternative
employment under the same employer within a radius
of 5 miles, the worker is not eligible for any
compensation. [Sec. 25E(1)]
If not reported for attendance, no compensation. [Sec.
25E(2)]
If layoff is due to strike or go slow by another section
of the unit, no compensation. [Sec. 25E(3)]
PROCEDURE TO APPLY FOR
LAYOFF PERMISSION
Establishments covered under shall make
application to appropriate Govt. in Form 03
[Sec. 25M]

Govt. may grant/refuse permission within 60
days. If no reply is received within 60 days
permission can be assumed. [Sec. 25M(5)]
RETRENCHMENT
Definition
Sec. 2 (oo) defines Retrenchment as the
termination by the employer of the service of
the workman for any reason whatsoever,
otherwise than a punishment inflicted by way
of disciplinary action.
Retrenchment does not include voluntary
retirement superannuation or termination of
employment on grounds of ill health.

CONDITIONS PRECEDENT TO
RETRENCHMENT OF WORKMEN
No workmen [Chapter VA]who has been
employed for not less then 1 year can be
retrenched until [Sec.25F]:
o 1 month notice in written & reason for
retrenchment.
o 15 days average pay for every completed
year of service.
o Notice served to the appropriate government.
(Contd.)
No workmen [Chapter VB]who has
been employed for not less then 1 year
can be retrenched until [Sec.25F]:
o Has been given 3 months notice in
written, indicating the reasons for
retrenchment.
o Compensation shall be equivalent to 15
days average pay for every completed
years of continuous service or any part
thereof in excess of 6 months
(Contd.)
o Notice shall be given to appropriate
government or such authority & the
permission of such government or authority is
obtained.
o Government or authority after making inquiry
may grant or refuse the permission to the
employer within 3 months of the date of
service of the notice.
if it does not communicate within 3 months
of such notice then the retrenchment is
legal.
if it does refuse the permission then the
retrenchment is illegal.


PENALTY FOR LAY-OFF &
RETRENCHMENT

Any employer who contravenes the provisions
of lay-off / retrenchment is punishable with
imprisonment for a term which may extend to
one month, or with fine which may extend to
Rs.1000/- or both.

CLOSURE
Closure" means the permanent closing down
of a place of employment or part of
establishment [Sec. 2(cc)]

Prohibitions
No permission is required, in smaller
establishments [Sec. 25(k)]
(Contd.)
Where permission is required, application
should be submitted (in the case of factories,
mines and plantations) to the Govt. with copy
to the union at least 90 days in advance. [Sec.
25O(1)]

If no reply is received within 60 days
permission can be assumed [Sec.25O(3)]
PENALTY
In case of not taking the prior permission or
informing representative of workmen,
imprisonment for a term which may extend to
6 month, or with fine which may extend to Rs.
5000, or with both.
In case of contravene of order, imprisonment
for a term which may extend to 1 year, or with
fine which may extend to Rs. 5000, or with
both.
UNFAIR LABOUR PRACTICES
ON THE PART OF EMPLOYERS
To interfere with, restrain from, or coerce,
workmen in the exercise of their right to organize,
form, join or assist a trade union or to engage in
concerted activities for the purposes of collective
bargaining or other mutual aid or protection.
To dominate, interfere with or contribute support,
financial or otherwise, to any trade union.
To establish employer sponsored trade unions of
workmen.
(Contd.)
To encourage or discourage membership in any
trade union by discriminating against any
workman.
To discharge or dismiss workmen.
To abolish the work of a regular nature being
done by workmen, and to give such work to
contractors as a measure of breaking a strike.
To transfer a workman mala fide from one place
to another, under the guise of following
management policy.
To insist upon individual workmen, who are on a
legal strike to sign a good conduct bond, as a
precondition to allowing them to resume work.

(Contd.)
To show favoritism or partiality to one set of
workers regardless of merit.
To employ workmen as "badlis", casuals or
temporaries and to continue them as such for
years, with the object of depriving them of the
status and privileges of permanent workmen.
To discharge or discriminate against any
workman for filing charges or testifying
against an employer in any enquiry or
proceeding relating to any industrial dispute.

To recruit workman during a strike which is
not an illegal strike.
Failure to implement award, settlement or
agreement.
To indulge in acts of force or violence.
To refuse to bargain collectively, in good faith
with the recognized trade unions.
Proposing or continuing a lock-out deemed to
be illegal under this Act.

(Contd.)
ON THE PART OF WORKMEN
To advise or actively support or instigate any
strike deemed to be illegal under this Act.
To coerce workmen in the exercise of their
right to self-organization or to join a trade
union or refrain from, joining any trade
union.
For a recognized union to refuse to bargain
collectively in good faith with the employer.
(Contd.)
To indulge in coercive activities against
certification of a bargaining representative.
To stage, encourage or instigate such forms of
coercive actions as willful, "go-slow",
squatting on the work premises after working
hours or "gherao" of any of the members of
the managerial or other staff.
To stage demonstrations at the residence of the
employers or the managerial staff members.

(Contd.)
To incite or indulge in willful damage to
employers property connected with the
industry.
To indulge in acts of force or violence or to
hold out threats of intimidation against any
workman with a view to prevent him from
attending work.

(Contd.)
AUTHORITIES UNDER THIS ACT
Works committee
Conciliation officers
Board of conciliation
Courts of inquiry
Labour courts
Tribunals
National tribunals

WORKS COMMITTEE
Where? : establishments with 100 or more
workers [Sec.3(1) &(2)]

Members : Equal number of representatives of
the Employer and Employees [Sec.3(1) & Rule
40]
Objective : promotion of good relationship
between employer and employee(s)
CONCILIATION OFFICERS
Appointed by appropriate Government
Nature : appointed for a specified area or for
specified industries in a specified area or for one
or more specified industries and either
permanently or for a limited period.
Duties :
When a strike/lockout notice is issued in a public
utility service, he is bound to convene immediate
conciliation meeting. [Sec.12(1) and Rule 9(1)]

(Contd.)

If he succeeds in bringing out an
understanding he gets the parties to sign a
settlement in Form H (Rule 58(1)] and
make necessary entries in the register in
Form O and sent a copy to the Govt.
[Sec.12(3) and Rules 58(1)(3) & 75]
If he fails to brings about a settlement, he
has to bring the fact to the attention of the
Govt. [Sec.12(4)]
Powers of conciliation officer:
Enter and inspect [Sec 11(1)]
Summon any person as witness or compel the
production of document [Sec.11(4) and Rule
17]
Grant/refuse to petition filed by employer on
disciplinary matters during pendency of
conciliation before him.

BOARDS OF CONCILIATION
Appointed by the appropriate Govt. as
occasion arises for settlement of disputes.
Board shall consist of an independent
chairman and two or four members in equal
numbers to represent the parties to the dispute.
The board can't work in the absence of the
Chairmen or any member.
COURTS OF INQUIRY
Appointed by the appropriate Govt. as
occasion arises for settlement of disputes.
Board shall consist of an independent person
or independent persons as the appropriate
government may think fit. Where a court
consists of two or more members, one of them
shall be appointed as the Chairman.
The board can't work in the absence of the
Chairmen or any member.
LABOUR COURT
Constituted by the appropriate government for
the adjudication of industrial disputes relating
to any matter specified in the Second Schedule
and for performing such other functions as
may be assigned to them under this Act.
Consist of one person only with the required
qualification to be appointed by the
appropriate government
THE SECOND SCHEDULE : Matters
with in the Jurisdiction of labour
Courts (Section 7)

The propriety or legality of an order passed by an
employer under the standing orders
The application and interpretation of standing orders
Discharge or dismissal of workmen including
reinstatement of, or grant of relief to, workmen
wrongfully dismissed
Withdrawal of any customary concession or privilege
Illegality or otherwise of a strike or lock-out; and
All matters other than those specified in the Third
Schedule.

TRIBUNALS
Constituted by the appropriate government for the
adjudication of industrial disputes relating to any
matter specified in the Second Schedule or third
schedule and for performing such other functions
as may be assigned to them under this Act.
Consist of one person with the required
qualification to be appointed by the appropriate
government. If required, Govt. may appoint 2
persons as assessors to advice in Tribunal.
THE THIRD SCHEDULE : Matters
with in The Jurisdiction of Industrial
Tribunals (Section 7A)

Wages, including the period and mode of
payment
Compensatory and other allowances
Hours of work and rest intervals
Leave with wages and holidays
Bonus, profit sharing, provident fund and
gratuity

(Contd.)
Shift working otherwise than in accordance
with standing orders
Classification by grades
Rules of discipline
Rationalization
Retrenchment of workmen and closure of
establishment
Any other matter that may be prescribed.

NATIONAL TRIBUNAL
Constitute by the Central Govt. for the
adjudication of industrial disputes which
involve questions of national importance or are
of such a nature that industrial establishments
situated in more than one State are likely to be
interested in.
Consist of one person with the required
qualification to be appointed by the
appropriate government. If required, Govt.
may appoint 2 persons as assessors to advice
in Tribunal.

ARBITRATION
When conciliation fails, and if the parties wish
to refer the issue for arbitration, both the sides
shall sign an arbitration agreement in Form C
under Rule 7 and send it to Govt. The Govt.
will then appoint an arbitrator [Sec.10(2), 10A]
Arbitration award is implemented like an
adjudication award.
DUTIES OF ADJUDICATION
MACHINERY
To complete the adjudication proceedings and
submit the report within the time [Sec.15,
10(2)(a)]
To restrict the scope of their judgment to the
point referred to them [Sec.10(4)]
POWER OF ADJUDICATORS
They can enter any establishment for fact
finding [Sec.11(2) and Rule 23]
Can enforce attendance of any person and
production of documents [sec.11(3), rules 10A
&10B]
Empowers to administer oath and issue
summons to parties and witnesses [Rule
16,17,18]
(Contd)
Can appoint assessors to assistance [Sec.11(5),
Rule 25]
Can pass orders awarding cost to the aggrieved
party [sec.11(7)]
Review punishment and can reduce/substitute
punishments [Sec. 11 (A)]
Can pass orders on money claim petitions
filled by workmen against employers [Sec.
33(C)(2)]
Take decision on petitions filed under Sec.33.
PENDENCY OF ADJUDICATION
[Sec.20(2)(c),20(3) and 17]
Adjudication proceeding are deemed to
commence on the date when the Govt. refers
the dispute to the authorities under Sec. 10 or
10(A)
Adjudication proceeding are deemed to have
concluded on the date on which their awards
become enforceable.
REPRESENTATION OF PARTIES
Advocates are prohibited from appearance.
[Sec.36(3)]
However advocates can be permitted on
mutual consent. [Sec.36(4)]
A co-worker, any union official can represent a
workman [Sec.36(1)(a),(b),(c)]
Officer of an association of Employers.
[Sec.36(2)(a),(b),(c)]
BIBLIOGRAPHY
Indian Business Enviornment
-T.R.Jain, Mukesh Trehan & Ranju Trehan

www.advocatekhoj.com

www.vakilno1.com
Presented By:
Joel Dmello
Rushikesh Basopiya