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INDUSTRIAL DISPUTES ACT, 1947
Compiled by N. Chidambaram
Industrial Disputes Act, 1947 is a piece of social legislation Enacted to provide for investigation and settlement of industrial disputes
Compiled by N. Chidambaram
retrenchment. layTo provide compensation in cases of lay-off. To prevent illegal strikes and lockouts. Compiled by N. and closure.SCOPE Applicable to all states of India To all industrial and commercial establishments nonemploying technical and non-technical workmen drawing Rs. To terminate disputes in a peaceful manner. Chidambaram 2 .1600 p. Chidambaram OBJECTIVES OF THE ACT To ensure social justice to both employees and employers and advance progress of industry by bringing about harmony and cordial relationship between the parties.m. To promote collective bargaining. Compiled by N.
Compiled by N.INDUSTRY Any business. nonwhich is connected with the employment or nonemployment or with the terms of employment or with the conditions of labor. of any person. Chidambaram 3 . handicraft or industrial occupation. trade. undertaking. employment. Chidambaram INDUSTRIAL DISPUTE (Sec 2k) Any dispute or difference between employers and employer or between employers and workmen and between workmen and workmen. Compiled by N. service. manufacture or calling of employers and includes any calling.
Chidambaram 4 . Prohibition of changes in the conditions of service in respect of matters laid down in the fourth schedule of the Act Compiled by N. Chidambaram a) b) lockProhibition of strikes and lock-outs in a public utility service Without giving notice to other party within six weeks before striking or locking out Within 14 days of giving such notice Compiled by N. Its duty is to promote and preserve amity and cordial relationship between employer and workmen.Machinery for prevention and settlement of I D Setting up of works committees in establishments employing 100 or more persons with equal number of representatives of workers and management.
Compiled by N. arbitration and adjudication.Prohibition of unfair labour practices Requiring employers to obtain prior permission of the authorities concerned before whom disputes are pending for conciliation. Chidambaram 5 . for changing working and employment conditions. or for dismissal or discharging employees and their union leaders. Chidambaram a) b) layRegulation of lay-off and retrenchment and closure of establishment: requires employers to layPay lay-off compensation to employees for the layperiod of lay-off @ 50% of salary or wages Give one month notice and also pay compensation @ 15 days wages for every completed year of service for retrenchment and closure of establishments Compiled by N.
Conciliation officer and Board of conciliation Voluntary arbitration Adjudication by labor court Compiled by N. Compiled by N.Settlement of I D I D which are not prevented or settled by collective bargaining or Works committee or Bipartite negotiation the following authorities are provided for resolving. Conciliation proceeding are obligatory in case of public utility services. Chidambaram 6 . Chidambaram Conciliation A process by which representatives of management and employees and their union are brought together before a third person with a view to persuade them to arrive at some agreement to their satisfaction and in the larger interest of the industry and community as a whole.
Board of Conciliation Higher forum constituted for solving a dispute but not a permanent one. parties can be advised to agree to voluntary arbitration. On settlement it has to submit a report to the government. Compiled by N. Parties should submit a written agreement mentioning the person acceptable to them as arbitrator and the issues for arbitration. Compiled by N. Government constitutes this as occasion arises with an independent chairman and equal number of representative members. Chidambaram 7 . It investigates the dispute and should facilitate the right settlement. signed by both. Based on panchayat system. Chidambaram Voluntary Arbitration When conciliation process fails to resolve the dispute.
Machinery for adjudication is – Labour courts. Procedures and their powers are one and the same. Compiled by N.Adjudication A compulsory method of resolving conflicts. Chidambaram LC – deals with I D specified in the second schedule of the Act (appendix III) IT . LC and IT are constituted by state government whereas NT is by central government.deals with I D specified in the third schedule of the Act (appendix IV) NT . Presiding Officers (One High court judge) Compiled by N.deals with any I D specified in the second and third schedule of the Act or any matter which is not specified therein. Industrial Tribunals and National Tribunals. Chidambaram 8 .
Compiled by N. They have power to substitute their decision for the decision of the employer. or a refusal under a common understanding. to what extent and to whom the cost of proceedings before them are to be paid. of any number of persons who are or have been so employed to continue to work or to accept employment Compiled by N. Chidambaram Strikes [sec 2 (q)] It means a cessation of work by a body of persons employed in any industry acting in combination. Chidambaram 9 .Power of L C and I T Every investigation by these authorities is deemed to be a judicial proceeding. Empowered to determine as to who. Empowered to compel the production of documents and material objects for examination. or a concerted refusal.
or the refusal by an employer to continue to employ any number of persons employed by him.Lockouts [sec 2(I)] The closing of a place of employment. Chidambaram 10 . Compiled by N. Chidambaram Employees has no fundamental right to resort to strike Compiled by N. or the suspension of work.
Lockouts and Wages Law says nothing during that period. Chidambaram 11 .General prohibitions on strike Not allowed in the following situations When conciliation is going on before the Board and seven days thereafter When adjudication is going on before a labor court and two months thereafter When and if an appropriate government prohibits When a settlement or award is in operation Compiled by N. But decisions of tribunals are Illegal strikes – wages – no Illegal lockouts – wages – yes Legal and justified strikes – sometimes Legal and unjustified strikes – no Compiled by N. Chidambaram Strikes.
do not amount to retrenchment. termination of employment on grounds of ill health. if this is considered necessary in the public interest.ESMA empowers central government to prohibit any and all strikes. Compiled by N. Chidambaram 12 . Chidambaram Retrenchment The termination by the employer of the service of a workman for any reason whatsoever other than a punishment inflicted by way of disciplinary action. lockouts in any essential service. ESMA overrides all other laws in case of conflict. Voluntary retirement. Compiled by N.