INDUSTRIAL DISPUTES ACT 1947

Prof. P K Misra
 INTRODUCTION
• An Act to make provision for the investigation and
settlement of industrial disputes and certain other
purposes.
• It came in existence in 1947.
• It is a central Act.

Prof. P K Misra
Prof. P K Misra
ID Act is applicable to which organizations?

Prof. P K Misra
 APPLICABILITY
• This Act applies to whole of India. [Sec 1(2)]
• The ID act is not applicable to all kinds of
establishments.
• It is applicable only to establishments satisfying the
definition of the term 'industry‘ as given in section
2j of the Act and as interpreted in several judicial
pronouncements).

Prof. P K Misra
What is definition of industry under ID Act?

Prof. P K Misra
 INDUSTRY
• Industry (section2j):
❑as any business, trade, undertaking , manufacture
or calling of employers
• and includes
❑any calling, service, employment, handicraft, or
industrial occupation or avocation of workmen.’

Prof. P K Misra
 INDUSTRY
• This definition gave rise to large scale litigation.
• Organizations contended that they are not covered
by this definition and are not ‘industry’ under ID
Act. They contended that they are not to comply
with the provisions of the ID Act.
• The Supreme Court (S.C.) in the ‘Banglore Water
Supply and Sewerage Board vs A J Rajappa and
others (1978 ILLJ 349) clarified the definition of
term industry as given in section 2 (j).

Prof. P K Misra
 SUPREME COURT CLARIFICATION OF
‘INDUSTRY’
• “ Industry means systematic activity carried on by
cooperation between an employer and his workmen
(whether such workmen are employed 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 -

Prof. P K Misra
 SUPREME COURT CLARIFICATION OF
‘INDUSTRY’
(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 1949);
(b) any activity relating to the promotion of sales or
business or both carried on by an establishment”

Prof. P K Misra
 INDUSTRY
• Since the Supreme Court judgment has not been
quashed or revised by the court, the clarification
on the definition given by the Supreme Court
governs the interpretation of the term ‘industry’
as defined in ID Act in all the courts of India.

Prof. P K Misra
Are all employees in an industry workmen?
Which employees are workmen?
Who are not workmen?
Are managerial staff completely excluded from
definition of workman irrespective of their
salaries?

Prof. P K Misra
 WORKMAN
• “Workman” means any person (including an
apprentice) employed in any industry to do any
manual, unskilled, skilled, technical, operational,
clerical or supervisory work for hire or reward,
whether the terms of employment be expressed
or implied, and for the purposes of any
proceeding under this Act in relation to an
industrial dispute, includes any such person who
has been dismissed, discharged or retrenched in
connection with, or as a consequence of, that
dispute, or whose dismissal, discharge or
retrenchment has led to that dispute,
Prof. P K Misra
 WORKMAN
• but does not include any such person –
• (i) who is subject to the Air Force Act, 1950 (45 of 1950),
or the Army Act, 1950 (46 of 1950), or the Navy Act,
1957 (62 of 1957); or
• (ii) who is employed in the police service or as an officer
or other employee of a prison; or
• (iii) who is employed mainly in a managerial or
administrative capacity; or
• (iv) who, being employed in a supervisory capacity,
draws wages exceeding ten thousand rupees per
mensem or exercises, either by the nature of the duties
attached to the office or by reason of the powers vested
in him, functions mainly of a managerial nature [Sec
2(s)].
Prof. P K Misra
 WORKMAN
• All employees in an establishment are not
'workmen' under the ID act. Only employees doing
manual, unskilled, skilled, technical, operational,
clerical (irrespective of their wages) and such of the
supervisors drawing wages below Rs.10000/pm -
see definition of wages in sn.2(rr) are workmen.
Dismissed workmen falling under the above
categories are also workmen. Managerial staff are
totally excluded irrespective of their salary.
• Supreme court judgment in Sandoz Ltd. case
reported in 1994 IILLN 1017) refers.
Prof. P K Misra
As per ID Act, what elements of pay are included
in wages?

Prof. P K Misra
 WAGES
• Wages will include Basic pay, DA, value of house
accommodation, other amenities, travelling
concession, commission payable and other
remuneration payable under the contract, but
excludes any bonus and retirement benefits like
EPF/Gratuity. - Section 2 (rr ).

Prof. P K Misra
 EMPLOYER
• “Employer" means –
(i) in relation to an industry carried on by or
under the authority of any department of the
Central Government or a State Government, the
authority prescribed in this behalf, or where no
authority is prescribed, the head of the
department;
(ii) in relation to an industry carried on by or on
behalf of a local authority, the chief executive
officer of that authority;

Prof. P K Misra
What constitutes industrial dispute?
Who can raise an industrial dispute?
Can only union raise an industrial dispute?
When can one individual raise an industrial
dispute?
Can anyone other than a workman raise an
industrial dispute?
Can workmen raise an industrial dispute with
non workman?
Can only a majority of workmen raise an
industrial dispute?

Prof. P K Misra
 INDUSTRIAL DISPUTE
• “Industrial dispute" means any dispute or
difference between employers and employers, or
between employers and workmen, or between
workmen and workmen, which is connected with
the employment or non-employment or the terms
of employment or with the conditions of labor, of
any person; [Sec 2k)]

Prof. P K Misra
 INDUSTRIAL DISPUTE
DISMISSAL, ETC., OF AN INDIVIDUAL WORKMAN
TO BE DEEMED TO BE AN INDUSTRIAL DISPUTE. -
Where any employer discharges, dismisses,
retrenches or otherwise terminates the services of
an individual workman, any dispute or difference
between that workman and his employer
connected with, or arising out of, such discharge,
dismissal, retrenchment or termination shall be
deemed to be an industrial dispute
notwithstanding that no other workman nor any
union of workmen is a party to the dispute (Sec
2A)
Prof. P K Misra
 INDUSTRIAL DISPUTE
• Extent and scope of the term 'industrial dispute‘ is
to be seen in the context of provisions in sections
2(k), 2(ka), 2(j), 2(s), 2(rr ), and 2(A) of the Act.
i)Dispute must be in an establishment satisfying the
definition of 'industry' in sections 2(ka) & 2 (j).
ii) Dispute must be between :
✓ employer vs. employer
✓ employer vs. workmen
✓ workmen vs. workmen

Prof. P K Misra
 INDUSTRIAL DISPUTE
iii) The subject matter of the dispute must be :
✓ connected with employment or non-employment
✓ connected with terms of employment
✓ connected with conditions of labor.
iv)of 'any person' - provided that person has a nexus
with the industry.
v) Dispute must be raised by workmen : by union, or a
group of workmen.

Prof. P K Misra
 INDUSTRIAL DISPUTE
• Can all employees in an industry raise an industrial
dispute [sn.2(s),2(k)]? – No. Industrial dispute can
be raised only by employees satisfying the
definition of 'workman' in section 2(s).
• Can only a majority of workmen in an industry
raise a dispute ? - It is not necessary that a majority
of workmen should support the raising of the
dispute. It is enough if a substantial number back
the raising of the dispute. While a union can raise
a dispute, it is not necessary that only a union can
raise a dispute. A single workman cannot normally
raise dispute.
Prof. P K Misra
 INDUSTRIAL DISPUTE
• When can an individual workmen raise a dispute
(i.e. even without the support of other workmen) ?
Normally only collective disputes (disputes raised
by a group of workmen can be taken up as
industrial disputes). An individual workman can
raise a dispute if it falls under the exceptional cases
listed in section 2 a: cases of dismissal, discharge,
retrenchment, termination only. For non-
termination issues (like promotion, transfer,
punishments not amounting to termination)
individual workman cannot raise a dispute if there
are no other workmen supporting his case.
Prof. P K Misra
 INDUSTRIAL DISPUTE
• Can workmen raise an industrial dispute pertaining
to non-workmen ? - Yes - they can as per section
2(k) raise an industrial dispute regarding 'any
person' if it can be shown that 'that person' has a
nexus with their industry (they could therefore
raise disputes demanding benefits or reinstatement
of dismissed managers / supervisors).
• g) How can an individual workman redress his
dispute ? He should get other workmen / union to
sponsor it to make it an industrial dispute under
sn.2(k). If it is a termination case he can raise it
himself under sn.2(a).
Prof. P K Misra
 APPROPRIATE GOVERNMENT
(i)“Appropriate Government" means - (i) in relation to
any industrial disputes concerning any industry
carried on by or under the authority of the Central
Government ……….. the Central Government.
(ii) In relation to any other industrial dispute, the
State Government (Sec 2 a).

Prof. P K Misra
 INDUSTRIES FOR WHICH APPROPRITE
GOVERNMENT IS CENTRAL GOVT.
1. Any industry carried on by or under the authority of the
Central Government.
2. By a railway company.
3. Any such controlled industry as may be specified in this behalf
by the Central Government.
4. Dock Labor Board .
5. Industrial Finance Corporation of India Limited.
6. Employees' State Insurance Corporation.
7. Board of Trustees constituted under the Coal Mines Provident
Fund and Miscellaneous Provisions Act, 1948.
8. Central Board of Trustees and the State Boards of Trustees of
the Employees' Provident Fund and Miscellaneous Provisions
Act, 1952 Prof. P K Misra
 INDUSTRIES FOR WHICH APPROPRITE
GOVERNMENT IS CENTRAL GOVT.
9. Life Insurance Corporation.
10. Oil and Natural Gas Corporation Limited.
11. Deposit Insurance and Credit Insurance and Credit Guarantee
Corporation .
12. Central Warehousing Corporation.
13. Unit Trust of India.
14. Food Corporation of India.
15. Airports Authority of India .
16. Regional Rural Bank.
17. Export Credit and Guarantee Corporation Limited.
18. Industrial Reconstruction Corporation of India Limited.
19. National Housing Bank
Prof. P K Misra
 INDUSTRIES FOR WHICH APPROPRITE
GOVERNMENT IS CENTRAL GOVT.
20. Banking Service Commission.
21. An air transport service.
22. A banking or an insurance company.
23. A mine.
24. An oil-field.
25. A Cantonment Board.
26. Major port.
27. Any company in which not less than fifty-one per cent of the
paid-up share capital is held by the Central Government.
28. any corporation, established by or under any law made by
Parliament.

Prof. P K Misra
 INDUSTRIES FOR WHICH APPROPRITE
GOVERNMENT IS CENTRAL GOVT.
29. Central public sector undertaking.
30. Subsidiary companies set up by the principal undertaking
and autonomous bodies owned or controlled by the
Central Government

Prof. P K Misra
 INDUSTRIES FOR WHICH APPROPRITE
GOVERNMENT IS STATE GOVT.
1. In relation to any other industrial dispute, including the State
public sector undertaking, subsidiary companies set up by the
principal undertaking and autonomous bodies owned or
controlled by the State Government, the State Government.”
2. Provided that in case of a dispute between a contractor and
the contract labor employed through the contractor in any
industrial establishment where such dispute first arose, the
appropriate Government shall be the Central Government or
the State Government, as the case may be, which has control
over such industrial establishment.”

Prof. P K Misra
 DISPUTE RESOLUTION MACHINERY
1) Conciliation Officer } (for conciliation)
2) Board of Conciliation }
3) Court of Enquiry (for enquiry)

4) Voluntary Arbitration (for arbitration)

5) (a) Labor Courts }
5) (b) Industrial Tribunals } (for adjudication)
5) (c) National Tribunal }
6) Grievance Settlement (for individual grievances)
Machinary
Prof. P K Misra
What type of conciliation machinery exists under ID
Act?
Who appoints a conciliation officer?
What are duties of a conciliation officer?
What are powers of a conciliation officer?
Can a conciliation officer force the two parties to settle
the dispute?
Can conciliation officer impose his decision on a dispute
to the parties to dispute?
How much time is given to conciliation officer to finish
the process of conciliation?

Prof. P K Misra
What is difference between conciliation officer and
Board of Conciliation?
Who constitutes Board of Conciliation?
When Board of Conciliation is constituted?
Can appropriate govt. intervene in a dispute even
when it is not raised by either of parties?
What happens when conciliation does not result in
settlement of a dispute?

Prof. P K Misra
 CONCILIATION
• Conciliation Officer: means a conciliation officer
appointed under this Act; (sec 2d).
• Appointment of conciliation officers:
(1) The appropriate Government may, by notification in the
Official Gazette, appoint such number of persons as it
thinks fit, to be conciliation officers, charged with the duty
of mediating in and promoting the settlement of industrial
disputes.
(2) A conciliation officer may be 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 (Sec4).
Prof. P K Misra
 CONCILIATION
• "Board" means a Board of Conciliation constituted
under this Act (Sec 2c).
• BOARDS OF CONCILIATION
(1) The appropriate Government, may as occasion arises, by
notification in the Official Gazette constitute a Board of
Conciliation for promoting the settlement of an industrial
dispute.
(2) A Board shall consist of a Chairman and two or four
other members, as the appropriate Government thinks fit.
(3) The Chairman shall be an independent person and the
other members shall be persons appointed in equal
numbers to represent the parties to the dispute and any
person appointed to represent a party shall be appointed on
the recommendation of that party (Sec 5).
Prof. P K Misra
 CONCILIATION
• Board of Conciliation is constituted for settlement
of a specific industrial dispute by the appropriate
Govt. when it finds there is a dispute or apprehends
a dispute under section 10 (1) .
• REFERENCE OF DISPUTES TO BOARDS, COURTS OR
TRIBUNALS. –
(1) Where the appropriate Government is of opinion that
any industrial dispute exists or is apprehended, it may at
any time, by order in writing, - (a) refer the dispute to a
Board for promoting a settlement thereof,
(part of section 10)

Prof. P K Misra
 DUTIES OF CONCILIATION OFFICERS
• Duties of Conciliation officer as stated in section 12.
(1)Where an industrial dispute exists or is apprehended, the
conciliation officer may, or where the dispute relates to a
public utility service and a notice under section 22 has been
given, shall, hold conciliation proceedings in the prescribed
manner.
(2)The conciliation officer shall, for the purpose of bringing
about a settlement of the dispute, without delay,
investigate the dispute and all matters affecting the merits
and the right settlement thereof and may do all such things
as he thinks fit for the purpose of inducing the parties to
come to a fair and amicable settlement of the dispute.

Prof. P K Misra
DUTIES OF CONCILIATION OFFICERS
(3) If a settlement of the dispute or of any of the matters in
dispute is arrived at in the course of the conciliation
proceedings the conciliation officer shall send a report
thereof to the appropriate Government or an officer
authorized in this behalf by the appropriate Government
together with a memorandum of the settlement signed by
the parties to the dispute.

Prof. P K Misra
TIME FOR SUBMISSION OF CONCILIATION
REPORT
• A report under this section shall be submitted
within fourteen days of the commencement of the
conciliation proceedings or within such shorter
period as may be fixed by the appropriate
Government :
- Provided that, Subject to the approval of the conciliation
officer, the time for the submission of the report may be
extended by such period as may be agreed upon in
writing by all the parties to the dispute (Sec 12).

Prof. P K Misra
 POWERS OF CONCILIATION OFFICERS
• Powers of Conciliation Officer are given in sec 11.
✓ Enter the premises occupied by any establishment to which
the dispute relates.
✓ Compel the production of documents and material objects.
✓ Issue commissions for the examination of witness.

Prof. P K Misra
 POWERS OF CONCILIATION OFFICERS
✓ He can enforce the attendance of any person for the
purpose of examination of such person or call for and
inspect any document which he has ground for considering
to be relevant to the industrial dispute or to be necessary
for the purpose of verifying the implementation of any
award or carrying out any other duty imposed on him under
this Act, and for the aforesaid purposes, the conciliation
officer shall have the same powers as are vested in a Civil
Court under the Code of Civil Procedure, 1908 (5 of 1908), in
respect of enforcing the attendance of any person and
examining him or of compelling the production of
documents.

Prof. P K Misra
 FAILURE OF CONCILIATION
If no such settlement is arrived at, the conciliation
officer shall, as soon as practicable after the close of
the investigation, send to the appropriate
Government a full report setting forth the steps
taken by him for ascertaining the facts and
circumstances relating to the dispute and for
bringing about a settlement thereof, together with a
full statement of such facts and circumstances, and
the reasons on account of which, in his opinion, a
settlement could not be arrived at [Sec12(4)].

Prof. P K Misra
 COURT OF ENQUIRY
• The appropriate Government may as occasion arises
by notification in the Official Gazette, constitute a
Court of Inquiry for inquiring into any matter
appearing to be connected with or relevant to an
industrial dispute. [Sec 6(1)]
• A Court may consist of one independent person or of
such number of independent persons as the
appropriate Government may think fit and where a
Court consists of two or more members, one of them
shall be appointed as the chairman. [Sec 6(2)]

Prof. P K Misra
What happens when conciliation does not result
in settlement of a dispute?
What is meant by adjudication?
What are adjudicating bodies under the Act?
When does adjudication commence and end?
What are duties of Labor Court, Tribunal, and
National Tribunal?
What are powers of Labor Court, Tribunal, and
National Tribunal?

Prof. P K Misra
 FAILURE OF CONCILIATION
• If, on a consideration of the report referred to in sub-
section (4), the appropriate Government is satisfied
that there is a case for reference to a Board, Labor
Court, Tribunal or National Tribunal, it may make such
reference.
• Where the appropriate Government does not make
such a reference it shall record and communicate to
the parties concerned its reasons therefore
[Sec12(5)].
- The Labor Court, Tribunal and National Tribunal adjudicate
on the Dispute.
- Adjudication is a judicial process (civil court).
Prof. P K Misra
 LABOR COURT
Labor courts are constituted by the appropriate
Government under section 7 of the Act as stated
below:
(1) The appropriate Government may, by notification in
the official Gazette, constitute one or more Labor Courts
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.
(2) A Labor Court shall consist of one person only to be
appointed by the appropriate Government.

Prof. P K Misra
 PRESIDING OFFICER LABOR COURT
(3) A person shall not be qualified for appointment
as the Presiding Officer of a Labor Court, unless –
(a) he is, or has been, a Judge of a High Court; or
(b) he has, for a period of not less than three years,
been a District Judge or an Additional District Judge;
or
(d) he has held any judicial office in India for not
less than seven years; or
(e) he has been the Presiding Officer of a Labor
Court constituted under any Provincial Act or State
Act for not less than five years (sec 7).
Prof. P K Misra
 TRIBUNAL
Tribunals are constituted by the appropriate Govt.
under section 7A of the ID Act as stated below.
(1) The appropriate Government may, by notification in
the Official Gazette, constitute one or more Industrial
Tribunals for the adjudication of industrial disputes
relating to any matter, whether specified in the Second
Schedule or the Third Schedule and for performing such
other functions as may be assigned to them under this
Act.
(2) A Tribunal shall consist of one person only to be
appointed by the appropriate Government.

Prof. P K Misra
 PRESIDING OFFICER OF TRIBUNAL
(3) A person shall not be qualified for appointment
as the presiding officer of a Tribunal unless –
(a) he is, or has been, a Judge of a High Court; or
(aa) he has, for a period of not less than three years,
been a District Judge or an Additional District Judge;
(4) The appropriate Government may, if it so thinks
fit, appoint two persons as assessors to advise the
Tribunal in the proceeding before it.

Prof. P K Misra
 NATIONAL TRIBUNAL
A National Tribunal is appointed by the Central Govt.
under section 7 b of the Act as stated below:
(1) The Central Government may, by notification in the
Official Gazette, constitute one or more National
Industrial Tribunals for the adjudication of industrial
disputes which, in the opinion of the Central Government,
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, or affected
by, such disputes.

Prof. P K Misra
POWERS OF LABOR COURTS & TRIBUNALS
They can enter the premises occupied by any
establishment to which the dispute relates.
-They shall have the same powers as are vested in a
Civil Court under the Code of Civil Procedure, 1908 (5
of 1908), when trying a suit, in respect of the
following matters, namely :-

Prof. P K Misra
POWERS OF LABOR COURTS & TRIBUNALS
(a) enforcing the attendance of any person and
examining him on oath.
(b)compelling the production of documents and
material objects;
(c) issuing commissions for the examination of witness.
(d) Every inquiry or investigation by a Labor Court,
Tribunal or National Tribunal shall be deemed to be a
judicial proceeding within the meaning of sections 193
and 228 of the Indian Penal Code (45 of 1860).
(e) They are public servants and thus have the
protection under section 197 of CrPC.
(f) They can award costs to aggrieved parties.
Prof. P K Misra
Who enforces the adjudication awards?
For what duration adjudication award is valid?
On whom the awards are binding?

Prof. P K Misra
DUTIES OF LABOUR COURTS, TRIBUNALS AND
NATIONAL TRIBUNALS
• These authorities are to hold proceedings
expeditiously and give award within the period
specified in the order referring such industrial
dispute or within the period extended under the
(2A) of section 10.
– In case the matter pertains to individual workmen, the
period prescribed for submission of award cannot exceed
three months.
• The award is to be submitted to the appropriate
Government.

Prof. P K Misra
 COMMENCEMENT & END OF ADJUDICATION

• Adjudication proceedings are deemed to have

commenced from the date the government referred
the dispute to labor court/tribunal / national
tribunal.
• Proceedings are deemed to have concluded on the
date the award becomes enforceable as per sec.17a
[sec.20(3)].

Prof. P K Misra
 PROCEDURE FOR ENFORCING
ADJUDICATION AWARDS
• The Labor Court / Tribunal / national tribunal only
send their findings to the govt. and not announce
them directly. [sec.15]
• The appropriate govt. decides whether to accept or
modify or with-hold the report.
• The govt. has to give their decision within 30 days
of receipt of the report [sec.17, 17a].
• The government order on the adjudication decision
becomes enforceable on the expiry of 30 days from
the date of the gazette notification [sec.17a].
Prof. P K Misra
 DURATION OF THE VALIDITY OF
ADJUDICATION AWARD
• Adjudication award (as published by government)
remains in operation for a period of one year from
the date it becomes enforceable under sec 17a
[sec.19(3)].
• Govt. has the power to reduce the validity period or
extend it by one year at a time subject to the total
duration not exceeding three years [sec.17a,19(3)].
• After the normal /extended period of operation, the
terms of the award continue to be in force until one
of the parties serves a formal notice of termination
[sec.19(5), 19(6), 19(7)].
Prof. P K Misra
 ON WHOM ARE THE AWARDS BINDING

• Awards are binding on all parties to the dispute.

• Awards are also binding on all other parties
summoned to appear in the proceedings to the
dispute.
• On the employer, his heirs, assigns and successors.
• On workmen currently employed and who
subsequently get employed in the establishments
[sec.18(3)].

Prof. P K Misra
What is meant by arbitration?
How does arbitration differ from adjudication
and conciliation?
How is arbitration process initiated?
Who constitutes Board of Arbitration?
What is composition of Board of Arbitration?

Prof. P K Misra
 VOLUNTARY ARBITRATION
• If the employer and the workmen agree to refer the
dispute to arbitration, they may, at any time refer
the dispute to arbitration to such person or persons
as arbitrator(s) as may be specified in the
agreement.
– However such reference has to be made before the dispute
has been referred under section 10 to a Labor Court, or
Tribunal or National Tribunal.
• If the agreement provides for even number of
arbitrators then the agreement has to provide for an
umpire who will enter dispute if there is
disagreement amongst arbitrators. Pl see [Sec 10 A]
Prof. P K Misra
 VOLUNTARY ARBITRATION
• The reference to arbitration is subject to approval
of the Govt. The agreement for referring a dispute
for arbitration has to be sent to appropriate govt.
who has to publish a notification.
• This arbitration is outside the jurisdiction of
Arbitration Act, 1940.

Prof. P K Misra
 DIFFERENCE BETWEEN ARBITRATION,
ADJUDICATION AND CONCILIATION
• The presiding officers of conciliation and
adjudication proceedings are full time officers
appointed by the govt.. Arbitrators are ad hoc
umpires appointed by the disputants and govt..
• The conciliation officer has no power to impose his
decision on the parties, an arbitrator has authority
to give an order which cannot be challenged by the
parties.
• Adjudicators get their power from statute,
arbitrators acquire their power from the consent of
the parties.
Prof. P K Misra
What is machinery for resolving individual
grievances?

Can an employee go to dispute settlement

machinery without going through individual
grievance redress machinery?

Prof. P K Misra
 INDIVIDUAL GRIEVANCES
• SETTING UP OF GRIEVANCE SETTLEMENT
AUTHORITIES AND REFERENCE OF CERTAIN
INDIVIDUAL DISPUTES TO SUCH AUTHORITIES
(Chapter II B Section 9C):
- Every industrial establishment employing twenty or more
workmen is required to have one or more Grievance Redress
Committee for the resolution of individual grievances.
- The Grievance Redressal Committee is to consist of equal
number of members from the employer and the workmen.

Prof. P K Misra
 INDIVIDUAL GRIEVANCES
• The chairperson of the Grievance Redressal
Committee shall be selected from the employer and
from among the workmen alternatively on rotation
basis every year.
• The total number of members of the Grievance
Redress Committee shall not exceed more than six:
Provided that there shall be, as far as practicable, one
woman member if the Grievance Redress Committee
has two members and in case the number of
members are more than two, the number of women
members may be increased proportionately.
Prof. P K Misra
 INDIVIDUAL GRIEVANCES
• The setting up of Grievance Redress Committee shall
not affect the right of the workman to raise industrial
dispute on the same matter under the provisions of
this Act.
• The Grievance Redress Committee may complete its
proceedings within forty-five days on receipt of a
written application by or on behalf of the aggrieved
party.

Prof. P K Misra
 INDIVIDUAL GRIEVANCES
• The workman who is aggrieved of the decision of
the Grievance Redressal Committee may prefer an
appeal to the employer against the decision of
Grievance Redressal Committee and the employer
shall, within one month from the date of receipt of
such appeal, dispose off the same and send a copy
of his decision to the workman concerned.

Prof. P K Misra
What is meant by pendency of proceedings?
When arbitration or adjudication is deemed to be pending?
What is impact of pendency on a strike or lockout?
Which services are called public utility services?
What is procedure for calling a legal strike in a public utility
service?
Can workmen participating in legal strike eligible to get
wages?
When can workmen participating in a strike be awarded
extreme penalty of dismissal from service?
What is penalty for participating in an illegal strike or for
declaring a lockout which is not legal under the Act?
Can a legal lockout out be declared when an illegal strike has
commenced?
When can disciplinary action taken by the employer for
participating in an illegal strike?
Prof. P K Misra
PROHIBITION OF STRIKES AND LOCK-OUTS
• 22(1) No person employed in a public utility
service shall go on strike in breach of contract –
(a) without giving to the employer notice of strike, as
hereinafter provided, within six weeks before striking;
or
(b) within fourteen days of giving such notice; or
(c) before the expiry of the date of strike specified in
any such notice as aforesaid; or
(d) during the pendency of any conciliation proceedings
before a conciliation officer and seven days after
the conclusion of such proceedings.

Prof. P K Misra
PROHIBITION OF STRIKES AND LOCK-OUTS
• Same provisions are applicable for ‘lock outs’.
• The notice of lock-out or strike under this section
is not necessary where there is already in
existence a strike or, lock-out in the public utility
service, but the employer shall send intimation of
such lock-out or strike on the day on which it is
declared, to such authority as may be specified by
the appropriate Government. (Sec 22)

Prof. P K Misra
PROHIBITION OF STRIKES AND LOCK-OUTS
• Public Utility Services are defined in sec 2n of the
Act.
- The Railways, the air services for passengers and goods
transportation, docks and ports, postal, telephones,
supply of light, power and water and sanitation
services.
- Certain services mentioned in Sch. 1 of the Act can also
be notified as Public Utility Services if occasion so
demands.

Prof. P K Misra
PROHIBITION OF STRIKES AND LOCK-OUTS
• No workman can go on strike in breach of contract and
no employer of any such workman can declare a lock-
out
(a) during the pendency of conciliation before a Board and
seven days after the conclusion of proceedings;
(b) during the pendency of proceedings before a Labor
Court, Tribunal or National Tribunal and two months after
the conclusion proceedings;
(bb) during the pendency of arbitration proceedings and
two months after the conclusion of such proceedings, or
(c) during any period in which a settlement or award is in
operation, in respect of any of the matters covered by the
settlement or award. (Sec 23)
Prof. P K Misra
PROHIBITION OF STRIKES AND LOCK-OUTS
• A strike or lock out is illegal if it contravenes
section 22 and 23 of the Act.
– However if a strike or lock out is already in existence
before the reference of a dispute to a Board, Court,
Tribunal or Arbitrator then it will not be illegal.
– A lock-out declared in consequence of an illegal strike or
a strike declared in consequence of an illegal lock-out
shall not be deemed to be illegal. (Sec 24)

Prof. P K Misra
 ILLEGAL STRIKES AND LOCK-OUTS
• As per Supreme Court Rulings, during a legal or illegal
strike, wages for the strike period are not payable on
the principle of ‘no work no pay’
• The Supreme Court has also ruled that the extreme
action of dismissal from service can be taken against
any one participating in a legal or illegal strike only if it
is proved that he indulged in violence or intimidation.
• However disciplinary action for participating in a illegal
strike can be taken for giving other punishments
provided the “Standing Orders” mention such
participation as misconduct.

Prof. P K Misra
PENALTY FOR ILLEGAL STRIKES AND LOCK-
OUTS
• Any workman who commences, continues or
otherwise acts in furtherance of a strike or any
employer who commences, continues, or otherwise
acts in furtherance of a lock-out which is illegal
under this Act,
– shall be punishable with imprisonment for a term which
may extend to one month, or with fine which may extend
to fifty rupees, or with both. [Sec 26]

Prof. P K Misra
 WHEN STRIKES/LOCKOUT ILLEGAL
'PUBLIC UTILITY SERVICE: Sec. 22(1)& (2), 23, 30, 19
a)without giving at least 14 days notice
b) commenced after 42 days of notice
c) prior to date indicated in the notice
d)during pendency of proceedings before conciliation
officer/board and seven days thereafter
e)during pendency of proceedings before labor court or
tribunal or arbitration and two months thereafter
f)during the period when a settlement or award is in
operation on matters covered

Prof. P K Misra
 WHEN STRIKES/LOCKOUT ILLEGAL
• NON-PUBLIC UTILITY SERVICE: Sec. 23, 20, 19
a) in breach of contract
b)during pendency of conciliation before a conciliation
officer or board and seven days thereafter
c)during pendency before labor court or tribunal or
arbitrator and two months thereafter
d)during the period on matters covered when a settlement
or award is in operation.
• A strike/lock out legally commenced would become
illegal if continued after government bans it under
section 10(4a) and 24.
Prof. P K Misra
 DUTY OF EMPLOYER ON RECEIVING /
GIVING NOTICE
• On receiving strike notice / or giving lockout notice.
[sec.22(3), 22(6)] should inform the appropriate
govt. within five days of receipt of notice [22(6)]
and also inform the conciliation officer.
• Lockout notice must be displayed on notice board
at the entrance and a report on strike / lockout
should be sent to appropriate govt. and conciliation
officer

Prof. P K Misra
Name two chapters dealing with Lay Off & Retrenchment?
Sections 25 C to 25 E of chapter VA apply to which
establishments?
Sections 25 K to 25 R of chapter VB apply to which
establishments?
What is meaning of one year’s continuous service?
What is meaning of one year’s continuous service for
underground mine?
Define lay off as per section 2(kkk) of ID Act?
When lay off provisions of ID Act are not applicable?
How many days notice is necessary for lay off for
organizations employing workmen between 50 and 99?
How many days notice is necessary for lay off for
organizations employing 100 or more workmen?
Prof. P K Misra
Under what circumstances notice is not necessary?
What amount of compensation is payable during lay off.
What constitutes wages for compensation for lay off?
If the permission for lay off is refused by the appropriate
Govt. then what compensation is payable?
When employer can deny compensation?
When conditions for denial of compensation are not
applicable?

Prof. P K Misra
 LAY OFF AND RETRENCHMENT
• There are two chapters dealing with lay off,
retrenchment and closure in the Act namely
Chapter V A and V B.
– Sections 25 C to 25 E which deal with Lay Off do not apply
to industrial establishments employing less than 50
workmen. Industrial establishments here means factory,
mine or plantation which are not seasonal.
– Provisions of Chapter V B (from Sec 25 K to 25 R) apply to
industries employing 100 or more workmen on any day
during preceding 12 months.

Prof. P K Misra
 ONE YEAR’S CONTINUOUS SERVICE
• One year continuous service means permanent
employment or working for 240 days in a period of
preceding 12 months in.
• 240 days will include days of sickness, earned
leave, availed or accident leave, maternity leave,
strike which is not illegal, lock out days and
cessation of work not due to fault of workman.
(Sec 25 B).
• For workmen employed underground in a mine,
190 days service in a mine.

Prof. P K Misra
 LAY OFF
• As per section 2(kkk) lay off is the inability / failure
/ refusal of the employer to give employment to
workmen on his muster rolls (excludes badlis and
casuals) on account of :
- shortage of coal / power
- shortage of raw materials
- accumulation of stocks
- breakdown of machinery
- natural calamity (like floods / earthquake /fire /
lightning, etc) or
- any other connected reason.

Prof. P K Misra
 LAY OFF

• As per section 25(B) only workmen who have put in

one year 'continuous service' (reckoned from the
date of lay off) are eligible to lay off compensation.
• Establishments employing average of 50 workmen or
more during the month prior to lay off and employing less
than 100 workmen on an average are regulated by
provisions of chapter V A and need not take seek any
permission from the appropriate Govt. but are required to
intimate the Govt. and give 60 days notice.
• Lay off provisions are not applicable if number of
workmen are less than 50
Prof. P K Misra
 LAY OFF
• Industrial establishments which employ average
of 100 or more workmen during the preceding 12
months prior to lay off are regulated by chapter V
B and must obtain permission from appropriate
Govt. by applying 60 days in advance.
• 60 days notice is necessary for lay off except in
case of natural calamities or shortage of power.
• If permission is not refused by the Govt. during
these 60 days or no reply is received, then
permission is deemed to have been given.

Prof. P K Misra
 LAY OFF

• During period of ‘Lay Off’ 50% of wages ( means

basic pay + DA) are payable. However intervening
weekly holidays are excluded. (sec 25 C)
• If the permission is refused, in case of industries
coming under chapter V B then ‘Lay Off’ is illegal
and full wages are payable even if employer is not
able to provide work. (Sec 25 M 8).

Prof. P K Misra
 LAY OFF
• Under certain contingencies employer can refuse to
pay lay off compensation:
– (a) if workmen refuse to accept alternate
employment under same employer within radius
of 5 miles [25(E)(1)].
– (b) If he does not report for giving attendance
[25(E)(2)].
– (c) If lay off is due to strike or go slow by another
section of workmen [25(E)(iii)].
• This denial of compensation is not applicable to
establishments falling under chapter VB.
Prof. P K Misra
 CONDITIONS FOR PAYMENT OF
COMPENSATION FOR ‘LAY OFF’ PROVISIONS IN
ID ACT
• Lay off provisions are applicable under following
conditions:
✓The establishment should not be a factory, mine or
plantation of seasonal in character or where work
is being done intermittently.
✓The establishment should have employed average
of 50 or more workmen in the month preceding
the month in which lay off is being done.

Prof. P K Misra
 CONDITIONS FOR PAYMENT OF
COMPENSATION FOR ‘LAY OFF’ PROVISIONS IN
ID ACT
✓The layoff has been necessitated due to -
shortage of coal / power; shortage of raw
trials; accumulation of stocks; breakdown of
machinery; natural calamity (like floods/
earthquake/fire/lightning, etc) or any other
connected reason.
✓The individuals to be laid off should have
completed one year’s continuous service.

Prof. P K Misra
 CONDITIONS FOR NON PAYMENT OF
COMPENSATION FOR ‘LAY OFF’ PROVISIONS IN
ID ACT
-if workmen refuse to accept alternate
employment under same employer within radius
of 5 miles;
-If he does not report for giving attendance;
-If lay off is due to strike or go slow by another
section of workmen.
• This denial of compensation is not applicable to
establishments having 100 or more workmen.

Prof. P K Misra
 WHEN LAY OFF CANNOT BE DONE

• Lay off cannot be done unless a notice of 60 days

has been served and Govt. informed in cases where
workmen are less than 100 and more than 50.
• Lay off cannot be done unless a notice of 60 days
has been served and permission sought from the
Govt. in cases where workmen are 100 or more.

Prof. P K Misra
What constitutes retrenchment under sec 2(oo) of ID
Act?
What are conditions for retrenchment if f workmen
are less than 100?
What are conditions for retrenchment if workmen is
more than 100?
When appropriate Govt.’s permission is to be sought
before retrenchment?
How many days are allowed for the appropriate
Govt. for deciding on the application for
retrenchment?

Prof. P K Misra
What action appropriate Govt. has to take on
receipt of application for permission to retrench
workmen?
If conditions precedent to retrenchment are not
fulfilled, what happens?
When employer can resort to retrenchment after
certain duration of lay off?
During transfer of undertakings how workmen are
governed?
When conditions of retrenchment will not apply
during transfer of undertakings?

Prof. P K Misra
 RETRENCHMENT
• All types of termination of a workman (employed in
any industry) would be retrenchment:
– Unless it is termination by way of disciplinary action
or it falls under any one of the following four
exceptions [sec (2)oo] :
1)voluntary retirement
2)retirement on reaching the age of
superannuation
3)termination resulting out of non-renewal of a
fixed term contract employment.
4)termination on account of continued ill- health.
Prof. P K Misra
 RETRENCHMENT
• Conditions precedent to retrenchment:
• As per Sec 25 F - No workman employed in any
industry who has been in continuous service for not
less than one year under an employer shall be
retrenched by that employer until :
(a) the workman has been given one month's notice in
writing indicating the reasons for retrenchment and the
period of notice has expired, or the workman has been
paid in lieu of such notice, wages for the period of the
notice;

Prof. P K Misra
 RETRENCHMENT
(b) the workman has been paid, at the time of
retrenchment, compensation equivalent to fifteen
days' average pay for every completed year of
continuous service or any part thereof in excess of six
months; and
(c) notice in the prescribed manner is served on the
appropriate Government.
• The employer shall ordinarily retrench the workman
who was the last person to be employed in that
category, unless for reasons to be recorded the
employer retrenches any other workman Sec 25 G).
Prof. P K Misra
 RETRENCHMENT
• When any workmen are retrenched, and the
employer proposes to take into his employment any
persons, he is required to give an opportunity to the
retrenched workmen to offer themselves for re-
employment, and such retrenched workmen who
offer themselves for re-employment shall have
preference over other persons. This applies for only
Indian citizens. (Sec 25 H).

Prof. P K Misra
 RETRENCHMENT
• In case of factories, mines and plantations,
employing 100 or more workmen on any day in
preceding 12 months the retrenchment conditions
are more stringent (Chapter VB). These are:
✓Three months notice or wages in lieu of notice is
necessary.
✓Permission of appropriate Govt. is to be obtained.
✓Compensation @ 15 days wages for each completed
year of service is payable.
✓‘First come last go’ principle will also apply.

Prof. P K Misra
 RETRENCHMENT
• The appropriate Govt. on receipt of application for
permission is required to enquire into reasons of
retrenchment, give opportunity to workmen and
employer to present their case. After this the
permission can be granted or refused.
• If no communication is received within 60 days then
permission is deemed to have been granted.
• If conditions precedent to retrenchment are not
followed, then such retrenchment can be set aside
by labor court and employee given back
employment with back wages.
Prof. P K Misra
 EMPLOYER CAN RESORT TO RETRENCHMENT
AFTER CERTAIN DURATION OF LAY OFF
• As per section 25 C an employer governed by
chapter V A can after 45 days of lay off in 12 months
retrench his workmen or sign a settlement with the
workmen to retain them on the muster rolls
without payment of lay off compensation.
• If he resorts to retrenchment he must follow
provisions of retrenchment stipulated in section 25
F. While paying retrenchment compensation he can
reduce the amount of Lay off compensation paid
during the previous 12 months [25(c )].
Prof. P K Misra
 RETRENCHMENT
• It is to be noted that retrenchment provisions at
section 25 F are applicable to all industrial
establishments.
• Number of workmen need not be more than 50.
The establishments which are ‘industry’ under ID
Act whether seasonal or not are covered by
provisions relating to ‘retrenchment’.
• However if the number of workmen are 100 or
more than the establishment should be a factory,
mine or plantation and should not be of seasonal
character
Prof. P K Misra
 TRANSFER OF UNDER TAKINGS
• Where the ownership or management of an
undertaking is transferred, to a new employer,
every workman who has been in continuous service
for not less than one year in that undertaking
immediately before such transfer shall be entitled
to notice and compensation in accordance with the
provisions of section 25F, as if the workman had
been retrenched .

Prof. P K Misra
 TRANSFER OF UNDER TAKINGS
• However the conditions of retrenchment i.e. Sec 25F
will not apply if (sec 25FF):
(a) the service of the workman has not been interrupted by
such transfer;
(b) The conditions of service applicable to the workman after
transfer are not in any way less favorable than those
applicable to him immediately before the transfer; and
(c) the new employer is, under the terms of such transfer,
legally liable to pay to the workman, in the event of his
retrenchment, compensation on the basis that his service
has been continuous and has not been interrupted by the
transfer.
Prof. P K Misra
What is meant by ‘closure’ under ID Act?
Under what circumstances a notice has to be given before
closure?
When permission of appropriate Govt. is required for
affecting closure?
How workmen are to be treated during closure?
What are two circumstances stated in ID Act for affecting
closure?
How workmen are to be treated when closure is for
unavoidable or avoidable reasons?
What are penalties for lay off and retrenchment without
permission under ID Act?
What are penalties for closure without permission under ID
Act?

Prof. P K Misra
 CLOSURE
• “Closure" means the permanent closing down of a
place of employment or part thereof. [Sec (2)cc].
• In case an industrial establishment employs 50 or
more workmen in preceding 12 months, than 60
days notice is to be given to the appropriate Govt.
• However the requirement of notice period can be
waived by the appropriate Govt. if there is an
accident or employer dies.
• Such notice is not necessary if number of workmen
are less than 50. (Sec 25FFA)

Prof. P K Misra
 CLOSURE
• Where an undertaking (factories, mines or
plantations) has employed 100 or more workmen
on any day during preceding 12 months, then a 90
days notice has to be given to appropriate Govt.
and also to the representatives of workmen.
• The representative of workmen can represent
against the closure.
• Permission of appropriate Govt. is required for
closure. However if no communication is received
within 60 days from the date of notice than the
permission is deemed to have been granted.
Prof. P K Misra
 CLOSURE
• Compensation to workmen in case of closing down
of undertakings (sec 25 FFF):
– Where an under taking is closed down for any reason
whatsoever, every workman who has been in continuous
service for not less than one year in that undertaking
immediately before such closure shall, be entitled to
notice and compensation in accordance with the
provisions of section 25F, as if the workman had been
retrenched.

Prof. P K Misra
 CLOSURE
• Undertakings can be closed for avoidable or
unavoidable reasons.
– If undertaking is closed down due to unavoidable reasons
than the maximum amount of compensation payable will
be limited to three months wages.
– In case of closure due to avoidable reasons the
compensation is payable without the above limit.
– The financial difficulties, accumulation of stocks or expiry
of lease are not taken as unavoidable reasons.

Prof. P K Misra
 PENALTIES FOR LAY-OFF, RETRENCHMENT AND
CLOSURE WITHOUT PREVIOUS PERMISSION
• The prescribed penalty as per section 25 Q for factories,
mines and plantations employing more than 100
workmen in preceding 12 months is:
– imprisonment up to one month, or with fine up to one thousand
rupees, or with both for Lay Off and Retrenchments without
previous permission.
• As per sec 25 R, the penalty for closures without
permission is:
– imprisonment for six months or fine of Rs five thousand or both.
• If permission is not given for closure than for each day of
unauthorized closure the fine will increase at rate of Rs
two thousand per day.
Prof. P K Misra
State five unfair labor practices for employer?
State five unfair labor practices for trade unions?
What penalties are prescribed for unfair labor practices by
employers or trade unions?

Prof. P K Misra
 UNFAIR LABOUR PRACTICES
• "unfair labor practice" means any of the practices
specified in the Fifth Schedule (Sec 2ra).
• Any person who commits any unfair labor practice
shall be punishable with:
– imprisonment for a term which may extend to six months
or with fine which may extend to one thousand rupees or
with both Sec 25 U).

Prof. P K Misra
What procedure is to be followed for affecting change
in service conditions of workmen?
What protection is available to workmen for change of
service conditions during pendency of a dispute?
What is called pendency of a dispute?
Under what circumstances service conditions can be
changed during pendency of a dispute?
What restrictions are placed for termination of services
of workmen under ID Act?
Who are protected workmen under ID Act?
What restrictions are placed under ID Act for
disciplinary action against protected workmen under ID
Act?

Prof. P K Misra
 ALTERING OF SERVICE CONDITIONS
• No employer, can effect any change in the
conditions of service applicable to any workman in
respect of any matter specified in the Fourth
Schedule,
- (a) without giving to the workman likely to be affected by
such change a notice in the prescribed manner of the
nature of the change proposed to be effected; or
- (b) within twenty-one days of giving such notice :

Prof. P K Misra
•No notice is required for effecting any such
change - where the change is effected in
pursuance of any settlement or award; or the
persons affected are Govt. servants.

Prof. P K Misra
 PROTECTION TO WORKMEN
• While employers are entitled to alter the service
conditions / take disciplinary action in terms of
their standing orders during normal times; some
restrictions are placed on these rights during
pendency of proceedings like conciliation,
arbitration and adjudication.

Prof. P K Misra
ALTERATION OF SERVICE CONDITIONS
DURING PENDENCY OF DISPUTE
– As per Sec 33(1) during pendency of proceedings,
any alteration of service conditions connected
with the dispute can be made only with
express written permission of the authority
before whom the dispute is pending.
– As per Sec 33(2)(a), even during pendency of
proceedings no permission is required for altering
any matter not connected with the dispute if the
standing orders or contract of employment of the
concerned workmen allow the employer to
make such alteration .
Prof. P K Misra
 PROTECTION TO WORKMEN
DURING PENDENCY OF DISPUTE

– As per Sec 33(1)(b) during pendency of proceedings

for dispute resolution any disciplinary punishment
for a misconduct connected with the dispute can be
taken only after obtaining express written
permission of the authority before whom the
dispute is pending.

Prof. P K Misra
 PROTECTION TO WORKMEN
DURING PENDENCY OF DISPUTE
– As per sec 33(2)(b) if the misconduct is not
connected with the pending dispute no prior
permission for dismissing or discharging is required
but ratification or approval is to be taken from the
authority after the termination order is issued.
– While issuing the termination order an application
for approval should be submitted to the authority
on the very same day of issue of the termination
order. One full month's wages (without any
deductions) should also be paid.
Prof. P K Misra
 PROTECTED WORKMEN
• A "protected workman", in relation to an
establishment, means:
– a workman who, being a member of the executive or
other office-bearer of a registered trade union connected
with the establishment, is recognized as such as per rules
made in this behalf. Explanation under 33 (3)
• In every establishment, the number of workmen to
be recognized as protected workmen shall be 1% of
the total number of workmen employed subject to a
minimum number of five and a maximum number of
one hundred protected workmen [Sec 33(4)].

Prof. P K Misra
 SPECIAL PROTECTION TO
PROTECTED WORKMEN
• During pendency of proceedings, trade union office
bearers who qualify for the status of 'protected
workmen‘ should not be punished or terminated
without the prior written permission from the
authority concerned. [an application for permission
is to be made].
• The conditions of service applicable to protected
workmen cannot be altered to his prejudice
immediately before the commencement of such
proceedings. [Sec 33(3)]
Prof. P K Misra
SIGNIFICANCE OF SECTION 33 OF THE I.D.ACT 1947

I SIGNIFICANCE - IT PLACES CERTAIN MAKE CHANGES IN SERVICE

OF SECTION 33 TEMPORARY CONDITONS OF WORKMEN
RESTRICTIONS ON TO AWARD PUNISHMENT OF
EMPLOYERS RIGHT DISMISSAL/DISCHARGE ON ANY
TO: WORKMAN
TO IMPOSE ANY KIND OF PUNISHMENT
ON UNION OFFICE BEARERS TREATED
AS ‘PROTECTED WORKMEN’
II ARE THESE - NO. [THERE ARE NO
RESTRICTIONS RESTRICTIONS IF NO
ALWAYS PROCEEDING IS
APPLICABLE ? PENDING [Sn 33(1)]
III THEN WHEN - IT APPLIES ONLY - CONCILIATION
ARE THEY DURING ‘THE - ADJUDICATION
APPLICABLE ? PERIOD OF - ARBITRATION
PENDENCY OF ANY
ONE OF THE [S 33(1)]
FOLLOWING
PROCEEDINGS:
IV WHAT IS MEANT - CONCILIATION IS DEEMED TO COMMENCE AND
BY ‘PERIOD OF CONCLUDE WHEN CONTINGENCIES MENTIONED IN
PENDENCY’ ? SECTION 20(1) 20(2) ARE SATISFIED

- SIMILARLY ‘ADJUDICATION’ & ‘ARBITRATION’ ARE

DEEMED TO COMMENCE & CONCLUDE WHEN
CONTINGENCIES MENTIONED IN SECTION 20(3) IS
SATISFIED.

Note: THE INTERVENING PERIOD IS CALLED THE

PERIOD OF PENDENCY
V WHAT IS THE NATURE OF RESTRICTIONS IMPOSED
CONTINGENCY TAKE PRIOR WRITTEN TAKE POST FACTO APPROVAL
PERMISSION

ALTERATION OF SERVICE CONDITIONS

A WHEN EMPLOYER WANTS ACTION ONLY AFTER
TO ALTER A MATTER/ GETTING PRIOR
SERVICE CONDITION WHICH WRITTEN PERMISSION
IS THE SUBJECT MATTER OF NA
FROM AUTHORITY
THE DISPUTE

B WHEN SERVICE CONDITIONS NO PERMISSION OR

/ ANY OTHER MATTER NOT
CONNECTED WITH THE
PENDING DISPUTE ARE TO
BE ALTERED IN CASE OF
PERSONS CONCERNED IN
THE DISPUTE [Sn 33(2)(a)]
APPROVAL IS REQUIRED IF
NA THE ACTION IS AS PER
APPLICABLE STANDING
ORDER PROVISIONS OR
PREVAILING SERVICE
RULES.
 PROTECTED WORKMEN

PUNISHING ‘PROTECTED ANY KIND OF IF NOT A ‘PROTECTED

WORKMEN’ PUNISHMENT TO WORKMAN’ FILE
[Sn 33(3), R-62] ‘PROTECTED APPROVAL PETITION
WORKMEN’ MUST BE (ONLY FOR
GIVEN ONLY AFTER TERMINATION CASES)
APPLYING AND
GETTING WRITTEN
PERMISSION

VI WHERE TO FILE PERMISSION OR APPROVAL APPLICATIONS TO

APPROVAL /PERMISSION BE FILED BEFORE THE DISPUTE PENDING
APPLICATIONS AUTHORITY
IF DISPUTE PENDING BEFORE MORE THAN ONE
AUTHROTITY – EMPLOYER CAN CHOOSE ANY
ONE OF THEM
VII IS THERE ANY SPECIFIC SEE THE APPLICABLE STATE RULES
FORMAT IN KERALA THE APPLICABLE RULE & FORMAT ARE AS
FOLLOWS:

CONTINGENCY RULE NO. IN FORM NO.

FOR PERMISSION 61(1) & (3) (4) & J
PETITIONS (5)

FOR APPROVAL 61(2) (3) (4) & (5) K

PETITIONS
VIII WHAT CAN A WORKMAN AS PER SECTION 33(A) AND RULE 60 (1) (2) (3) (4) HE CAN
DO WHEN EMPLOYER FILE A COMPLAINT TO THE AUTHORITY BEFORE WHOM
DOES NOT COMPLY WITH PROCEEDING IS PENDING
SECTION 33
IX CONSEQUENCES OF THE WORKMAN HAS TO BE REINSTATED IN SERVICE AND
APPROVALS NOT BEING GIVEN FULL BACK PAY AND BENEFITS [Sn 33(A)]
GRANTED
X GENERAL EVEN IF APPROVAL/PERMISSION IS GIVEN UNDER SECTION
33, WORKMAN CAN RAISE A SEPARATE DISPUTE
CHALLENGING HIS DISMISSAL [Sn-2(A) & 11A]

EVEN IF NO APPLCATION FOR PERMISSION/APPROVAL IS

MADE, DISMISSAL/DISCIPLINARY ACTION WILL NOT BE
IPSO FACTO ILLEGAL. EMPLOYERS CAN STILL JUSTIFY
HIS ACTION WHEN CASE COMES UP BEFORE LABOUR
COURT.

EVEN IN PERMISSION CASES THE EMPLOYER CAN FILE

THE PERMISSION APPLCIATION AND PARALLALY PLACE
THE WORKMAN UNDER SUSPENSION PENDING ENQUIRY
PROVIDED HE IS PAID THE APPLICABLE SUBSISTENCE
ALLOWANCE TILL THE PERMISSION APPLICATION IS
DISPOSED OF.

Y BHATT
Under what circumstances a works committee can be
ordered to be constituted by appropriate Govt.?
What is the proportion of representatives of workmen
and employers in the works committee?
How representatives of workmen and employer are
chosen?
What areas of functioning come under works
committee?
Are employers bound by the recommendations of
works committee?

Prof. P K Misra
 WORKS COMMITTEE
• In the case of any industrial establishment in which
one hundred or more workmen are employed or
were employed on any day in the preceding twelve
months, the appropriate Government may by
general or special order require the employer to
constitute in the prescribed manner a Works
Committee consisting of representatives of
employers and workmen engaged in the
establishment so however that the number of
representatives of workmen on the Committee shall
not be less than the number of representatives of
the employer. [Sec -3(1)]
Prof. P K Misra
 WORKS COMMITTEE
– The representatives of the workmen shall be chosen in the
prescribed manner from among the workmen engaged in
the establishment and in consultation with their trade
union, if any, registered under the Indian Trade Unions Act,
1926. ( [Sec -3(1)]
– It shall be the duty of the Works Committee to Promote
measures for securing and preserving amity and good
relations between the employer and workmen and, to that
end, to comment upon matters of their common interest or
concern and endeavor to compose any material difference
of opinion in respect of such matters. [Sec -3(2)]

Prof. P K Misra
 WORKS COMMITTEE
• Section 38 of the Act gives powers to the
appropriate Government to make rules for the
constitution and functioning of Committees in the
discharge of their duties.
• The Works Committees were to deal with working
conditions, welfare, recreation, educational and
social services.

Prof. P K Misra
 WORKS COMMITTEE
• The Works committee is a recommendatory body
which serves limited purpose only and doe not act
as a participative management forum in true sense.
• The elections to works committee demonstrate the
representative character of unions in the absence of
clear union membership mechanism.
• In many industries these committees serve as
individual grievance handling forums.
• The paid holidays, weekly holiday, and shift working
are decided in consultation with these committees.
• They manage labor welfare funds.
Prof. P K Misra