AMITY LAW SCHOOL II

Labour Law
Submitted to:
Ms. Sreedurga TN

Submitted by:
Asmita Jain (A11921614051)
 ACKNOWLEDGEMENT
Every work accomplished is a pleasure – a sense of satisfaction. However a
number of people always motivate, criticize and appreciate a work with their
objectives ideas and opinions hence we would like to use this opportunity to
thank all, who have directly or indirectly helped us to accomplish this project.

Firstly I would like to thank Ms. Shreedurga TN without whose support this
project could not be completed. His invaluable opinions and suggestions has
contributed a lot in the making of this project on Labour Law.
Definition of Industry
as per Industrial
Dispute Act , 1947
with relevant case
laws
 Contents

Industrial dispute act……………………………………………....5-6

 objectives…………………………………………………..…..5
 Applicability……………………………………………...……6

Industry………………………………………………….…………...7

Case Laws……………………………………………………………9

Bibliography…………………………………….…………………..11
 Industrial Disputes Act, 1947

Objective
The objective of the Industrial Disputes Act is to secure industrial peace
and harmony by providing machinery and procedure for the
investigation and settlement of industrial disputes by negotiations.

The laws apply only to the organized sector. Chapter V-B, introduced by
an amendment in 1976, requires firms employing 300 or more workers
to obtain government permission for layoffs, retrenchments and
closures. A further amendment in 1982 (which took effect in 1984)
expanded its ambit by reducing the threshold to 100 workers.

The Act also lays down:

1. The provision for payment of compensation to the workman on

account of closure or lay off or retrenchment.
2. The procedure for prior permission of appropriate Government for
laying off or retrenching the workers or closing down industrial
establishments
3. Unfair labor practices on part of an employer or a trade union or
workers.
 Applicability
The Industrial Disputes Act extends to whole of India and applies to
every industrial establishment carrying on
any business, trade, manufacture or distribution of goods and services
irrespective of the number of workmen employed therein.

It is an Act to make provision for the investigation and settlement of

industrial disputes, and for certain other purposes.

Every person employed in an establishment for hire or reward

including contract labor, apprentices and part-time employees to do any
manual, clerical, skilled, unskilled, technical, operational or supervisory
work, is covered by the Act.

This Act though does not apply to persons mainly in managerial or

administrative capacity, persons engaged in a supervisory capacity and
drawing > 10,000 p.m or executing managerial functions and persons
subject to Army Act, Air Force and Navy Act or those in police service
or officer or employee of a prison.
 Industry

Sec 2 (j) says that:

"Industry" means any systematic activity carried on by co- operation between an
employer and his workmen (whether such workmen are employed by such
employer directly or by or through any agency, including a contractor) for the
production, supply or distribution of goods or services with a view to satisfy
human wants or wishes (not being wants or wishes which are merely spiritual or
religious in nature), whether or not,--
(i) any capital has been invested for the purpose of carrying on such
activity; or
(ii) such activity is carried on with a motive to make any gain or profit,
and includes—
(a) any activity of the Dock Labour Board established
under section 5A of the Dock Workers (Regulation of
Employment) Act, 1948 (9 of 1948 );
(b)  any activity relating to the promotion of sales or
business or both carried on by an establishment. but
does not include--
(1) Any agricultural operation except where such agricultural operation is
carried on in an integrated manner with any other activity (being any
such activity as is referred to in the foregoing provisions of this clause)
and such other activity is the predominant one. Explanation.-- For the
purposes of this sub- clause," agricultural operation" does not include any
 activity carried on in a plantation as defined in clause (f) of section 2 of
the Plantations Labor Act, 1951 (69 of 1951 ); or
(2)  hospitals or dispensaries; or
(3)  educational, scientific, research or training institutions; or
(4) institutions owned or managed by organizations wholly or substantially
engaged in any charitable, social or philanthropic service; or
(5)  khadi or village industries; or
(6) any activity of the Government relatable to the sovereign functions of the
Government including all the activities carried on by the departments of
the Central Government dealing with defense research, atomic energy
and space; or
(7)  any domestic service; or
(8)  any activity, being a profession practiced by an individual or body or
individuals, if the number of persons employed by the individual or body
of individuals in relation to such profession is less than ten; or
(9)  any activity, being an activity carried on by a co- operative society or a
club or any other like body of individuals, if the number of persons
employed by the co- operative society, club or other like body of
individuals in relation to such activity is less than ten;]
 Case Laws

 State of Uttar Pradesh vs. Industrial Tribunal IV, Agra ,

(2002)
It has been held that irrigation department of the state is an industry
 Executive engineer Yavatmal Medium Project Division v.
Anant , 1998
Projects undertaken by irrigation department would fall under the definition
of industry as described within this section
 Mohan v. State of Kerela , 1994
The definition in clause (ka) of section 2 does not make any difference
between ‘industrial development “ and “ undertaking “ in which any industry
is carried on ; An establishment can be taken out of pale of industry only if it
exercises inalienable government functions . Sovereign Functions of the
state cannot be included in “industry “.

 State of Bombay versus Hospital Mazdoor Sabha , AIR 1960

In our opinion, therefore, the undertaking of Government in running these

hospitals and employing workmen constitutes an "industry" within the
meaning of the Act and the Act applies to these Hospitals. Therefore, the
workmen of these hospitals can claim all the rights given to workmen under
the Industrial Disputes Act.

The Supreme court worked out the following formula for deciding whether
an establishment is an industry or not. It observed that –
(1) An activity systematically or habitually undertaken –

(a) For production or distribution of goods , or

(b) For rendering of material service to community at large , or a part

of such community with the help of employees is an undertaking.

(2) Such activity generally involves the co –operation of employer and

employees ,

(3) The object is the satisfaction of material human needs

(4) It must be arranged or organized in a manner in which trade or business

is generally arranged or organized

(5) It must not be casual or for pleasure.

 Corporation of City of Nagpur v. Employees, 1960

The Sc said the following regarding scope of industry:

The definition of industry in the act is very comprehensive. It is in 2 parts :

one part defines it from the standpoint of employer and the other from the
standpoint of the employee . If an activity falls under either part of the
definition it will be an industry within the meaning of act.

 Management of Safdarjung Hospital v. Kuldeep singh Sethi ,

1971

It was held that “ an industry is to be found when the employees are carrying
on any business , trade or undertaking , manufacture or calling of employers.
 If they are not, there is no industry as such: It was that employees in a
government health department are not workmen engaged in an industry.“

Bibliography

 www.lawnotes.in
 www.scribd.com
 www.academia.com
 www.wikipedia.com
 Avtar Singh – Labor Law- I
 The industrial Disputes Act , 1947