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The Industrial Disputes Act 1947 Later Part
The Industrial Disputes Act 1947 Later Part
i. An award is binding & will come into operation on the expiry of 30 days
from the date of its publication.
ii. It will remain in operation for a period of 1 year from the date on which the
award becomes enforceable.
iii. Government may reduce the said period & fix such periods as it thinks fit.
The government may also extend the period of operation by any period
not exceeding 1 yr. at a time but the total period of operation of any award
cannot exceed 3 yrs. From the date on which it comes into operation.
v. If for any reason the award does not become enforceable, it can never
come into operation. The date on which an award comes into operation
may or may not be the date on which it becomes enforceable.
Penalties & Case studies of
settlement & awards
Penalty for breach of settlement or award:
Case Studies:
i. Plurality of workmen.
ii. Cessation of work or refusal to continue to work.
iii. Acting in combination or concerted action under a common understanding.
General prohibition of strikes:
No group of workman may strike in the following 5 situations:
1. Conciliation going on before a Board of Conciliation & 7 days
thereafter.
2. Adjudication before a Labour Court or Tribunal & 2 mths.
thereafter.
3. Appropriate government prohibits the continuance of any strike.
4. Arbitration before an Arbitrator & 2 mths. thereafter.
5. A settlement or an award is in operation.
(Note: prohibition restricted to those matters only which are
covered by the settlement or award.)
Additional restrictions on strikes in
Public Utility Services (Sec. 22).
• Strike notice must be given to the employer & Conciliation Officer.
• Strike must not take place for 14 days after the notice has been given.
• Strike must not take place after 6 weeks from the notice.
• Strike must not take place before the day, if any, specified in the
strike notice.
• Strike must not take place during conciliation before a Conciliation
Officer & 7 days after the conclusion of such proceedings.
Penalties
• Penalty for illegal strikes • Penalty for giving
(Sec 26): financial aid to illegal
Any workman who commences, strikes (sec. 28):
continues or other wise acts in Any person who knowingly
furtherance of a strike which is expends or applies any money in
illegal under this Act, shall be direct support of an illegal strike
punishable, with imprisonment is punishable with imprisonment
for a term which may extend to 1 for a term upto 6 mths., or a fine
upto Rs. 1000, or with both.
mth., or with fine which may
extend to Rs. 50, or with both. • Case Studies:
1. Lakshmi Devi Sugar Mills vs.
• Penalty for instigation of Ram Sarup (1957-I LLJ. 17 S.C.)
illegal strikes (sec. 27):
– sudden
Any person who instigates or
concerted stoppage of work.
incites others to take part on an –
illegal strike in punishable with strikers cannot be exempted from
imprisonment for a term upto 6 the consequences.
mths., or a fine upto Rs. 1000, or – employers has the right to
with both. suspend the striking workmen.
LOCK-OUTS
A lock-out means :-
An illegal lock-out is
punishable with imprisonment
for a term which may extend to
6 months or a fine up to Rs.
1000 or with both.
Lay – off (Chpt. VA & VB)
Section 2 (KK) of the Act defines lay – off as “ the failure, refusal or inability of an
employer on account of shortage of coal & power or raw material or the accumulation
of stocks or the breakdown of machinery or for any other reason to give employment
to a workmen whose name is borne on the muster roll of his industrial establishment &
who has not been retrenched.”
In Industrial undertaking where lay – off provisions apply, only those workmen will be
entitled to lay – off compensation.
A workmen is entitled for compensation for all days of lay – off unless there is an
agreement to the contrary between him & the employer to the limit of 45 days in a year.
No compensation shall be paid to the workmen:
• Supreme Court said that for 1 year of continuous service it must be shown that a
person must be employed for period not less than 12 months and during those 12
months he must have worked not less than 240 days.
• Here the Supreme Court said that it is not necessary for an employee to have
worked for the period of 12 months and just having worked for not less than 240
days will qualify within the terms.
3. Madras High Court in P. Joseph and others V/s
Loyal Textile Mills (1975-I LLJ 499):
• Under Sec. 25 – 0
► An employer who intends to close down an undertaking or an industrial
establishment shall serve,
a) Approval at least 90 days before the date.
b) It shall not apply to an undertaking setup for the construction of buildings,
bridges, roads, dams, canals, or for other construction work.
► If the appropriate government does not communicate the permission within
period of 2 months from the application date –
The permission applied for shall be deemed to have been granted on the
expiration of the said period of 2 months.
► If the permission for closure is refused –
The closure of the undertaking shall be deemed to be ill – legal.
Closure-5B(sec25-o)
Compensation to workmen Differences:
in case of closing down (s.25
fff) LAY-OFF &
Case - Engineering Metal & RETRENCHMENT
General Workers Union v/s
M.Jeeveanlal Ltd
RETERNCHMENT &
Case - K.O.Anthony v/s
CLOSURE
P.V.kumaran Sec. 25F(b)
(case: Raj Hans Press v/s
Penalties - for illegal closure
Labour Court Delhi)
(s.25r)