Q.1. History and Objective of Industrial dispute act 1947?

Answer –
History
The World War I (1914-1919) brought a new awakening among the working class people
who were dominated by the employers regarding the terms and conditions of service and
wages. The workers resorted to strikes to fulfill their demands and the employers retaliated
by declaring lockouts. During the period 1928-29 the numerous strikes and lock-outs forced
the Government to enact the Trade Disputes Act, 1929.
The Trade Dispute Act, 1929 was introduced for the settlement of industrial disputes. This
Trade Union Act gave the trade unions a legal status. The main object of the Act was to make
provision for the establishment of Courts of Enquiry and Boards of Conciliation with a view
to investigating and settling trade disputes.
But, this Act failed to create favorable atmosphere in the industry and settle the disputes. The
main defect of the Act was that no provision was has been made to render the proceedings
institutable under the Act while restraint had been imposed on the right of strike and lock-out
in the public utility services. But, later this defect was overcome by empowering under Rule
81-A, of the Defense of Indian Rules to refer industrial disputes to adjudicator for settlement
during the Second World War (1938-1945).
The rule provide speedy remedies for industrial disputes by compulsory reference of disputes
to conciliation or adjudication, by making the awards of adjudicators legally binding on the
parties, by prohibiting strikes and lock-outs during the pendency of conciliation or arbitration
proceeding.
With the termination of the Second World War, Rule 81-A was about to lapse on 1st October,
1946, but it was kept alive by recourse to Government’s Emergency Powers. The main
provision was retained in the Industrial Disputes Act, 1947.
Objective
1. To encourage good relations between labor and industries, and provide a medium of
settling disputes through adjudicator authorities.
2. To provide a committee for dispute settlement between industry and labor with the right of
representation by a registered trade union or by an association of employers.
3. Prevent unauthorized strikes and lockouts.
4. Reach out to labor that has been laid-off, unrightfully dismissed, etc.
5. Provide labor the right to collective bargaining and promote conciliation.
Q.2. Meaning of Industry under Industrial Dispute Act with Various
case law? Evolution of Industry
Answer –
Definition of Industry
Sec.2 (j) of the Industrial Disputes Act, 1947 defines ‘industry’ as any business, trade,
undertaking, manufacture, or calling of employers and includes any calling, service,
employment, handicraft or industrial occupation or avocation of workmen”.
An industry exists only when there is relationship between employers and employees, the
former is engaged in business, trade, undertaking, manufacture or calling of employers and
the latter is engaged in the calling, service, employment, handicraft or industrial occupation
and avocation.

Sec. 2(j) gives the definition of industry, which was elaborated upon by the Supreme Court in
the Bangalore Water Supply and Sewerage Board v. R. Rajappa[i]. The term industry has
been given a wide scope and the judgment overruled several earlier decisions. The court held-
1. Any activity will be industry if it fulfills the ‘triple test’, as under:
Systematic and organized activity
With the cooperation between Employers and employees
For the production and distribution of good and services whether or not capital has been
invested for this activity.
2. It is immaterial whether or not there is profit motive or whether or not there is capital.
3. If the organization is a trade or business it does not cease to be one because of philanthropy
animating the triple test, cannot be exempted from scope of definition of industry.
4. Dominant nature test – whether there is complex of activities, the test would be
predominant nature of services and integrated nature of departments. All departments
integrated with industry will also be industry.
5. The exceptions to industry are-
Casual activities (because they are not systematic).
Small clubs, co – operatives, research labs, gurukuls which have an essentially non employee
character.
Single door lawyer taking help from clerk (because there is no organized labour).
Selfless charitable activities carried on through volunteers e.g. free legal or medical service.
Sovereign functions – strictly understood, i.e., maintenance of law and order, legislative
functions and judicial function.
Charitable Institutions
These fall into three categories –
(a) Those that yield profit, but the profits are not siphoned off for altruistic purposes;
(b) Those that make no profit but hire the service of employees as in any other business, but
the goods/ services which are the output, are made available at a low or no cost to the
indigent poor; and
(c) Those that are oriented on a humane mission fulfilled by men who work, not because they
are paid wages, but because they share the passion for the cause and derive job satisfaction.
The first two categories are industries, but not the third, on the assumption that they all
involve co-operation between employers and employees.
Case Law
1) In Management of Safdarjung Hospital v. Kuldip Singh,
It was held that a place of treatment of patients run as a department of the government was
not an industry because it was a part of the functions of the government. Charitable hospitals
run by Government or even private associations cannot be included in the definition of
industry because they have not embarked upon economic activities analogous to trade or
business. If hospitals, nursing home or a dispensary is run as a business in a commercial way,
there may be elements of industry.
2) In Dhanrajgiri Hospital v. Workmen ,
The main activity of the hospital was imparting of training in nursing and the beds in the
hospital were meant for their practical training. It was held not to be an industry, as it was not
carrying on any economic activity in the nature of trade or business.
3) In Bangalore Water Supply v A. Rajappa,
The Supreme Court overruled Safdarjung Hospital and Dhanrajgiri Hospital cases, and
approved the law laid down in Hospital Mazdoor Sabha case. It was held that hospital
facilities are surely services and hence industries. The government departments while
undertaking welfare activities cannot be said to be engaged in discharging sovereign
functions and hence outside the ambit of Sec.2(j) of the Act.

Q. 3. Who is workman under industrial dispute act? Explain with the

help off case law.
Answer –
Workman
Definition of "workman" , is provided under Sec. 2(s) of the Act is as under:
"Workman" is 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 express or implied and for the purposes of any
proceedings 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.
Case Law
1) In Chintaman rao vs. state of Madhya Pradesh AIR (1958) SC 358 it was held that there
should be a contractual relationship between master and servant i.e. the workman is under the
supervision, direction and control of his master.
2) In Atam prakash & ors vs. state of Haryana & ors 1997 (2) LLJ (P & H) it was held that to
be a workman within section 2(s) of this Act he should be employed in an industry and there
should be master servant relationship.
3) In John joseph khokar vs. bhadange B. S. & ors 1998 (1) LLJ 447 (bom) it was held that in
determining that whether a person is a workman or not the court has to principally see main
or substantial work for which he is employed. Neither designation nor any incidental work
done by him will get him outside the purview of this Act.
4) In Pillai G. M. vs. A. P. lakhanikar, judge iii labour court & ors 1998 (2) LLJ 44 (bom) it
was held to determine whether a person is a workman his main and substantial work have to
be seen.
5) In Physical Research Laboratory vs. K.G. Sharma (SUPREME COURT OF INDIA)
It was held that Laboratory Ahmadabad, would come within the definition of "workmen"
under the Industrial Disputes Act and other similar legislation in the field of relations
between employers and employees."
6) In Standard Chartered Grindlays Bank Retired Employees Association v. Union of India
2007 II LLJ 887 (Cal) it was held that a retired employee can be included in the term
"workman" as defined in section 2(s) of the Industrial Disputes Act, 1947 and can be a party
to an industrial dispute.
7) In Reserve Bank of India and Others vs. C.N. Sahasranaman and Others (SUPREME
COURT OF INDIA)
It was held that employees are fully covered by the definition of the term "workman" in
section 2(s) of the said Act.

Q.4. Who is not a workman Under Industrial Dispute act?

Answer -
There are certain employee who cannot be considered as workmen by the statute as per
section 2 (s) : 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 managerial or administrative capacity, or
(iv) who, being employed in a supervisory capacity draws wages exceeding Rs. 6500/- per
month or exercises, either by the nature of the duties attached tot he office or by reason of the
powers vested in him, functions mainly of a managerial nature."
Case Law
1) In Ved prakash gupta vs. m/s delton cable India (p) ltd., AIR 1984 SC 914 it was held that
a person employed in managerial capacity or administrative capacity is not a workman.
2) In Bhaskaram vs. kerela state electricity board 1986 LLN 869 it was held that an
apprentice cannot claim any privilege as workman.
3) In Vimal kumar jain vs. labour court, Kanpur & anrs. , AIR 1988 SC 384 it was held that
maintenance engineer supervising the work of maintenance with the power to grant leave, to
initiate disciplinary proceedings and to make temporary appointments is not a workman.
4) In Puri urban cooperative bank (m/s) vs. madhusudan saha & anr. , (1992) 3 SCC 323, an
appraiser for weighing and testing gold ornaments brought to a bank as security for bank
loan. It was held that he cannot be regarded as a workman.
5) In Management of heavy engineering corporation ltd vs. presiding officer labour court
1996 it was held that appointed as general duty medical officer grade 11 on ad hoc basis for 6
months as sole in charge of first and post- a male nurse, nursing attendant, sweeper and one
driver of ambulance working under him. It was held that he cannot be regarded as workman
as he us doing supervisory work.
6) In Sub divisional inspector of post vaikan vs. theyyan joseph 1996 (8) SCC 489 it was held
that extra departmental agents in postal service were civil servants and not workmen.
7) In M. M. wadia charitable hospital vs. umakant ramchandra warekar (Dr.), 1997 (2) LLJ
(bom), it was held that it was never the object of I D Act that highly qualified doctors or
esteemed surgeons would be entitled to claim the protection of this welfare legislation. In the
case of medical men rendering only professional service to various institutions and no
relationship is created between the parties which entitled them to claim the status of a
workman.
8) In Bombay telephone canteen employee’s association vs. union of India & anr. , 1997 (2)
LLJ 647 ( SC), canteen employees were dismissed from service that led to an industrial
dispute. Industrial tribunal held that departmental canteen is not an industry and in order to
classify an employee as workman the condition precedent is that he is employed in an
industry.
9) In State of Maharashtra & ors vs. shaligram, s/o dhondbaji charjan & ors, 1998(2) LLR
1012 (bom) the above view regarding medical officers was confirmed. It was held that
empowered with administrative work and supervisory work over the staff working under him
cannot be regarded as workman.
10) In Singer sewing machine co. (m/s) vs. presiding officer labour court iv, Kanpur & ors,
1998 (2) LLR 813 (ALL), driving car provided to him by the company will not make him
come within the definition of workman as under I.D. Act.
11) In Vilas dumale vs. siporex India ltd. & anr., 1998 (1) lab IC 1099 (bom), petitioner was
initially appointed as a clerkand was promoted from time to time. when his service was
terminated he was in a cadre above time keeper and below that of a personnel officer. He was
paid a Rs. 1055 as salary and conveyance allowance which was not payable to workmen.
Leave application was signed by him and he also signed for departmental heads and also
worked as enquiry officer in departmental enquiries. Held, that I wont be justified to consider
him as a workman.
12) In Kamal kumar vs. J.P.S. mallick presiding officer labour court & ors. 1998 (2) LLR 628
(del), it was held that mere use of the word “apprentice” cannot confer a right over a trainee
to be called a workman.
13) In Mar Baselius Medical Mission Hospital v. Joseph Babu 2007 II LLJ 925 (Ker) it was
held that a doctor examining patients, diagnosing diseases and prescribing medicines as a
full-time employee of hospital cannot be a "workman", irrespective of his designation.
14) In Bangalore Water Supply and Sewerage Board, Etc., Etc vs. A. Rajappa and Others,
Etc., Etc (SUPREME COURT OF INDIA) the organization was excluded from the sphere of
industry by necessary implication. It was held that the Act itself treats certain public utility
services, run by governmental agencies as with the sphere of the strength of such provisions,
that a particular set of employees are outside the scope of the I.D. Act for that reason. The
special excludes the applicability of the general.

Q. In Collective Bargaining who can participate?

Answer: All employee has the right to participate in matters relating to collective bargaining
and any other union’s lawful activities except superintendents, managers, and persons
employed through the nomination of the employer.

CASE LAW: In ram Prasad Vishwakarma vs industrial tribunal, the court observed that “ it
was a great disadvantage to the worker to obtain a good environment of work in which
worker get their dignity and wages from their employers during the days before collective
bargaining concept came into existence. After the establishment of trade union in our
country, collective bargaining became a practice and now it is a rule and law.

Features of Collective Bargaining:

Collective process.
Participation of workers and management in bargaining.
Continuous process, it is a continuous process where negotiation does not end.
This includes both industrial growth as well as per capita growth of a worker.
It promotes an eco-friendly environment in the workplace.
The subject matter of collective bargaining:
To decide or carry out a contract which is broad in nature of employment relationship
between workers and employers.
The execution of the contract. It is the main part of the contract where the terms and
condition of various matters are implemented.
Problems of Collective Bargaining
The main agenda of both employers and union are to settle the matter through arbitration
process between themselves by concluding into a common minimum agreement rather than
sorting it arbitrarily. But collective bargaining is limited to large plants and factories. Small
factory organization does not come under this rule.
In India, laws give an easy way to arbitration. Under the industrial dispute act, the parties
related to the dispute can approach the government to refer the matter for arbitration to an
Industrial tribunal or labour court.
collective bargaining

Q. In Arbitration who pays the dues of court?

Answer: Both parties equally pay all expenses of an arbitrator and, in the case of an
arbitration court then both party pays all expenses for the arbitrator and to the court as well.

Q. Objective of Standing Order Act

Starting with the very objective the Standing Orders Act, out of which there are three. The
first objective states that the act is to provide regular standing orders for factories, workers
and the main professional or working relationship.

The second aim is to ensure that all employees recognize their employment terms and
conditions they are expected to follow or adhere to. This is to help minimize the exploitation
of workers against their will and knowledge.
The third objective states that it also supports the promotion of industrial peace and harmony
by supporting fair industrial practices.

Next, it tells employers the procedure for getting standing orders certified. If they fall under
the Industrial Employment (standing order) Act, they are expected to register themselves by
giving in five draft copies of those standing orders.
The documents are sent to the certifying officers as appointed by the government, such as a
regional labour commissioner for assessment. The assessment and final certification of those
standing orders is successful provided when they have all of the following details.

 Classification of all workers into categories like temporary, probation, permanent, etc.
 The method through which workmen are informed about holidays, working hours.
 Shift working
 Temporary suspensions of work.
 Notice periods and other provisions regarding the termination of employment.
 All actions and inaction that are to be treated as misconduct and consequences for said
faults.
 Grievance redressal procedure in cases of unfair treatment by the employer.
 Attendance system to be followed by all employees.
 Workmen information and records
 The process followed for obtaining an accumulation of leaves, leave encashment
 Employment termination as issued by employer and employees and notice thereof.
Q. How the Standing Order Act affects Labour terms?
These objectives lie at the very core of the Standing Order Act and determine the direction in
which all clauses go. The Act applies to all legal industrial establishments that have
employed 100 or more employees, as defined in Section 1 (3). And, under Section 2 (i), the
word ‘industrial establishments’ applies to all that have been listed below.
1) The Railway Industry
2) Industrial Establishments as mentioned in Section 2 (i) of the Payment of Wages Act.
3) Factories, as defined in Section 2 (m) of the Factories Act.
4) Establishment of contractors, who employ workers for completing the contract of a person
who owns an Industrial Establishment, as per Section 2 (e)
5) Worker as given in the Industrial Disputes Act, Section 2 (s). According to Section 2 (i),
the term worker is applied to all manual, clerical, skilled and unskilled trades.

It doesn’t include those people who have been employed in administrative, supervisory or
managerial capacities or those people who are subject to the Army Act, Air Force Act, Navy
Act, prison services and police.
Q. Worker compensation act

Employees or Worker’s Compensation Act, 1923 is one of the most important social security
law. The act’s main aim is to provide financial protection and assistance to employees and
their dependents through compensation in case of any accidental injury occurs during the
course employment. It is generally applicable to the cases where such incidents lead to either
death or disablement of the worker. In this article, we view the various aspects of the
Worker’s Compensation Act in detail.

Applicability of the Act

It applies to all employees working in mines, factories, plantations, construction
establishments, oilfields, etc. Moreover, it applies to establishments which are under
Schedule II of the Worker’s Compensation Act.
The act applies to persons who are working abroad or outside India as per Schedule II of the
Act.
It applies to a person recruited as the mechanic, helper, driver, etc. in connection with a motor
vehicle. It also applies to a captain or members of the crew of an aircraft.
Moreover, the act does not cover the members of armed forces of the U&W who are already
under ESI (Employee State Insurance) Act.

Q. Employer’s Liability
(A) Cases where they have to pay
Injury by accident during employment
Diseases in occupation
(B) Cases where they do not have to pay
In case of any injury or damage which does not lead to the semi or total disablement of the
workers for a period exceeding 3 days.
In case of any injury which does not result in death or permanent total disablement under the
following circumstances:
the workman present at the time of the work under the control of drink or drugs.
when the worker deliberately disobeys the rule which ensures their safety.
non-application of the devices which are especially for the safety of the workers.

Q. Compensation Determination
(A) In case of injury leading to Death
An amount equal to Fifty Percent of the monthly salaries of the dead employee multiplied by
the appropriate factor or with the amount of Rs.80,000 or more.

(B) In case of injury leading to permanent total disablement

An amount equal to 60% of the monthly wages of the injured workmen multiplied by the
relevant factor or an amount of 90,000 or more.

(C) In case of an injury occurring in permanent partial disablement

In this case of permanent disablement due to injury, an amount equal to the percentage of loss
of earning capacity is given to the disabled.

(D) In case of injury leasing to temporary disablement

According to Section 4(2), Half-monthly payments is given which is equal to 25% of the
worker’s compensation.

Q. What are the provisions related to the ‘Half-monthly Payments’ and ‘Registration of the
Agreements’?
Solution: A Commissioner reviews the Half-monthly payment on the application by the
Employer or employee. A certificate of qualified medical expert should go with the
application. It states that there are changes in the condition of the employee. On review, the
act can extend, decrease, continue or end or convert the Half-monthly payments. Generally,
they convert it into lump-sum payments under the Worker’s Compensation Act, 1923.
The amount payable as compensation can be adjusted in the manner or means of agreement.
The employer needs to send a memorandum to the Commissioner. The commissioner will
verify and if satisfied, record the memorandum in a properly registered manner.