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Investigation & settlement of industrial disputes prevention of illegal strikes & lock-outs To introduce & promote collective bargaining To provide relief to workmen in lay off & retrenchment To make awards more effective and binding to maintain industrial peace & harmony

Act provides machinery for settlement of industrial disputes I.D.Act contemplates conciliation, mediation, voluntary arbitration & compulsory adjudication as modes of settlement of industrial disputes.

Act deals with strikes , lockouts, lay offs & retrenchments in industries - rights & liabilities of parties .

Act defines terms like appropriate govt , industry, industrial dispute, pus, strike, lock-out, lay off & retrenchment etc.


Appropriate govt. Means

(I) In relation to any dispute concerning any industry carried on by or under the authority of the central govt. Or (ii) by a railway company or (Iii) concerning any such controlled industry (Iv)Dock labour board , major port, air transport service, banking company, mine or oilfield etc, The central govt and in relation to any other industrial dispute the state government.

Industry means - any business, trade, undertaking, manufacture or calling of employers and includes calling

, service, employment, handicraft or industrial occupation or avocation of workmen.

Workman Any person ( including an apprentice) employed in an for hire or

industry , to do

manual , skilled, unskilled , technical,

employment be express or

operational , clerical or supervisory work , reward, whether the terms of implied and it includes -

Any such person who has been dismissed, industrial dispute or whose dismissal, retrenchment has led to that dispute.

discharged or

or retrenched in connection with or as consequence of discharge

But it does not include any such person who is subject to army act, navy act or air force act. Person employed in police service or an officer or other employee of prison Person employed mainly in managerial or administrative capacity Being employed in supervisory capacity but drawing wages exceeding Rs 6500/- and performing functions which are mainly of managerial in nature.


Industrial dispute between :


a dispute



Employers & employers, employer & workmen and workmen & workmen. Connected with employment, non- employment, terms Of employment & conditions of labour/ industrial matter . Collective interest of workmen. An individual dispute , if supported by the union becomes an industrial dispute.

Whoever discharges, dismisses, retrenches or otherwise terminates any individual workman , the dispute relating to such discharge, dismissal or retrenchment

amounts to an industrial dispute,


even though

nor is

is neither espoused by the union

supported by the majority of the workmen employed in

the establishment.

Dispute supported by the union or majority of workmen continues to be an industrial dispute, even though union withdraws its support subsequently. the


Cessation of work by body of persons Acing in combination or concerted refusal or Refusal under common understanding Of any number of persons who are or have employed to continue to work or To accept employment.

been so

Strike is a weapon in the hands of the workmen to course the employer to accede to their demands.

Essential pre-requisites of strike :

There must be cessation of work Cessation of work must be by body of persons employed in the industry The strikers must have been acting in combination or There must be concerted refusal or Refusal under common understanding Of any number of persons who are or have been so employed - to continue to work or - to accept employment.

Sit down strike Pen down strike / tool down strike Go slow ( slow gear strike) Agitation / dharana / gate meetings Picketing Work to rule Lightening strike Hunger strike Token strike Pearl strike Sympathetic strike Mass casual leave Wearing black badges ( protest )

Prohibition of strikes in public utility services

No person employed in PUS shall breach of contract go on Strike in

1) Without giving Notice of strike within six weeks of striking OR

2) Within 14 days of giving such Notice OR

3) Before the date of strike specified in the Notice OR 4) During the pendency of the Conciliation Proceedings before the Conciliation Officer and seven days after conclusion of such proceedings.

General prohibition of strikes No person employed in any Industrial establishment shall go on Strike in breach of contract 1) During the pendency of Conciliation proceedings before a Board and seven days after its conclusion. 2) During the pendency of proceedings before the adjudication Authorities and two months after its conclusion. 3) During the pendency of Arbitration Proceedings before an Arbitrator and two months after its conclusion 4) During any period in which a settlement or Award is in operation.


Lock out means closing of a place of employment or Suspension of work or Refusal by an employer to employ any number of persons employed by him.

Lock-out is coercive , legitimate weapon in the hands of the employer for forcing the workers to accept his demands & to withdraw the demands made by them.


In closure , there is severance of employment relationship. While in Lockout, there is no severance of employment relationship but there is only suspension of such relationship. Lockout is caused by the Existence or an apprehension of industrial dispute. Closure need not be in consequence of an industrial dispute. Closure is permanent and irrevocable shutting down of an undertaking where as lockout lactic in bargaining . In Lockout there is intention to reopen the undertaking where as in Closure , the undertaking is permanently closed.

Lay off
lay off means failure, refusal or inability part of the employer , on account of:

on the

shortage of coal Shortage of power shortage of raw materials accumulation of stocks breakdown of machinery or natural calamity e.g.. Cyclone, earthquake etc. Any other connected reason beyond the control of the employer To give employment to the workmen whose name is born on the muster roll & who has not been retrenched.

Prohibition on lay off :

No workman (other than the badli or casual workman) whose name is born on the muster roll is to be laid of by an employer a) except obtaining the prior permission of the appropriate govt. B) employer to make an application in the prescribed manner seeking permission. C) the appropriate govt may after giving a reasonable opportunity of being heard to the employer , the workmen concerned and the persons interested in such lay off may by order grant or refuse to grant such permission, having regard to the genuineness and adequacy of the reasons there for.

d) If appropriate govt. Does not communicate have been granted.


decision within 60 days, the permission deemed to

e) the order shall be binding on all concerned and shall remain in force for one year f) A lay off is deemed to be illegal, if no application for lay off is made in the prescribed manner and workmen will be entitled to all the benefits, as if they had not been laid off.

Disentitlement to Lay Off Compensation

He is badli or casual workman. His name is not born on the muster roll of the establishment He has completed less than one year of continuous service . He does not present himself for work at the establishment , at the appointed time, during normal working hours at least once a day. He has refuses an alternative employment offered by the employer in his another undertaking situated within radius of five miles from the establishment to which he belongs. If such lay off is due to strike or slowing down of production on the part of workmen in another part of establishment.

Closure Closure means Permanent closing down of a place of employment or part thereof :

Permanent closing down of place of employment & not business itself. Employer employee relationship ceases. Statutory compensation is payable Permission of appropriate govt. Ids required for closure

Retrenchment Retrenchment means termination by an employer of the service of a workman for any reason what so ever , otherwise than punishment inflicted by way of disciplinary action. ( In short , it is the reduction of excess manpower ) but it does not include : Voluntary retirement of a workman Retirement on reaching age of superannuation Termination of service for non-renewal of contract of employment after the expiry of fixed term contract termination of service on the ground of continued ill health.

Conditions for effecting retrenchment

One months notice in writing, indicating the reasons therefore or wages in lieu of such notice. Compensation @ 15 days wages for every year of continuous service. To serve notice to the appropriate govt in the prescribed manner. Doctrine of last come first go Re-employment of retrenched workmen

Recovery of money due from the employer ( I ) Application to the Appropriate Govt:
Where any money is due from the employer under Settlement or Award - the workman himself or any other person authorised by him or his Assignee or heirs ( in case of workman's death), without prejudice to any other mode of recovery, make application to the Appropriate Govt

Time limit for making such application is one month , from the date when money becomes due from the employer. Such application can be entertained even after the period of one month, for sufficient reasons. Appropriate Govt may recover the amount due , as a recovery of land revenue.


( I ) Application to the Labour Court t: [Sec -33 -C(2) ]

Where any workman is entitled to receive from the employer Any money or benefit , which is capable of being computed in terms of money and such payment is disputed , then such question may be decided by the Labour Court, within a period of one year. Labour Court may appoint Commissioner for the purpose of computing money due or the value of the benefit , who shall submit his report to the Labour Court. Decision of Labour Court shall be forwarded to the Appropriate Govt. A single joint application for the recovery of amount due may be made on behalf of any such number of workmen. Appropriate Govt may recover the amount due , as a recovery of land revenue.

Recovery of money due from the employer Pre - requisites

Claim only by a 'workman' as defined under the act . Only if the claim is undisputed . right to claim must be adjudicated appropriate court / authority. one, by the

There must be existing right to claim the money due. The proceedings are executory & not adjudicatory.

Appropriate government works committee conciliation officer Board of conciliation court of inquiry labour court Industrial tribunal National tribunal

Voluntary arbitration
Parties can refer for voluntary arbitration any industrial dispute existing /apprehended, before the same is referred for adjudication.

Such reference is made by written agreement , in the prescribed manner.

Appointment of umpire is made when agreement provides for even no. of arbitrators.

If arbitrators are equally divided, the opinion of umpire shall prevail.

Arbitration agreement must be in the prescribed form and signed by the parties.

A copy of arbitration agreement shall be forwarded to the appropriate. Govt. Who shall publish the same in official gazette. .

one month of publication , appropriate. Govt. Shall issue notification . . Arbitrators investigate the dispute and submit to the appropriate govt. .

report apply.

of arbitration act -1940 does not

Amendment act, 2010 salient features


of appropriate govt. ( Section-2 (a) amended. from Rs.

Enhancement of wage ceiling of a workman 1600/- per month to Rs. 10,000/- per month .

access to the workman to the labour court or industrial tribunal in case of disputes arising out of section-2 A of the act.
Empowering labour court or tribunal to execute awards, orders of settlements arrived at by labour court or industrial tribunals.

AMENDMENT ACT, 2010 SALIENT FEATURES Expanding the scope of qualifications of Presiding Officers of Labour Courts or Tribunals under Section -7 & Section 7A of the Act.

Establishment of Grievance Redressal Machinery in every industrial establishment employing 20 or more workmen for the resolution of disputes arising out of individual grievances.

The Amendments have been brought into force w.e.f. 15.09.2010.