EMPLOYEE RELATIONS:

LEGAL FRAMEWORK
INDUSTRIAL DISPUTES ACT
1947
Continued…

Name : Prof. Shailendra Nigam

 DEFINITIONS

• Lay-off Sec 2(kkk)

• Lock – out Sec 2(l)

• Retrenchment Sec 2(oo)

• Strike Sec 2(q)

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 CHAPTER V
STRIKES & LOCK-OUTS

• Prohibition of Strikes & Lock-outs Sec 22

• General prohibition of strikes & lock-outs Sec 23

• Illegal Strikes and Lock-outs Sec 24

• Prohibition of financial aid to illegal strikes

and Lock-outs Sec 25

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 CHAPTER V-A
LAY-OFF & RETRENCHMENT
• Application of Sections 25C to 25E Sec 25A

• Definition of Continuous Service Sec 25B

• Right of Workmen laid off for compensation Sec 25C

• Duty of an employer to maintain muster Sec 25D

rolls of workmen

• Workmen not entitled to compensation in Sec 25E

certain cases

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• Conditions precedent to retrenchment of Sec 25F
workmen

• Compensation to workmen in case of Sec 25FF

transfer of undertakings

• Sixty days notice to be given of intention Sec 25FFA

to close down any undertaking

• Compensation to workmen in case of Sec 25FFF

closing down of undertakings

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• Procedure for Retrenchment Sec 25G

• Re-employment of retrenched workmen Sec 25 H

• Application of Chapter V-B Sec 25K

• Prohibition of Lay off Sec 25M

• Conditions precedent to retrenchment Sec 25N

of workmen

• Procedure to closing down an undertaking Sec 25-O

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 PROBLEMS: Whether Industry?

• Can a proprietary firm carrying on a family business of auto parts and

supplying them will come within the purview of ‘industry’?

• Can a mess in the railway school for consumption of food by the

trainees will be an industry?

• Will a temple run by a trust engaging services of employees on regular

basis be an industry as defined by section 2(j) of I D Act?

• Is Irrigation department of Karnataka State be considered as industry?

• Can a Gurudwara as managed by its committee for distribution of

Karah – Parshad and a free kitchen be an indusrty as per I D Act?

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PROBLEMS: Notice of Change in conditions
of Services (Section 9A)
• An employee voluntarily offered to work at the guest house and was
asked to work for six days a week instead of five days of a week in
the factory. Is there any violation of Sec 9A of ID Act?

• Whether VRS resulting into reduction of posts will amount to change

in conditions of service?

• Whether cancellation of allotted quarter to a workmen will amount to

change in conditions of service?

• Will the decision of a company to close down of a mailing section

amount to rationalization and thus violation of section 9A of I D Act?

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 PROBLEMS: Lay Off

• Can shortage of electricity due to non payment of electricity bill

justify lay off?

• Should compensation be paid for lay off declared due to slowing

down of production by the workers?

• Whether declaration of lay off without prior permission by a unit

employing more than 100 workmen be legal?

• Can financial stringency be a cause for which a lay off can be

declared?

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 PROBLEMS: Lock Out

• Can the government prohibit lock out while referring the demands
for adjudication?

• Will the declaration of lock out be illegal if employees resort to illegal

strike?

• Can prohibition by government of the lock out declared by employer

for persistent go-slow on the part of workmen be sustainable?

• Can union challenge alleging lock out pertaining to closure of a

branch of the company?

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 PROBLEMS: Retrenchment

• Can termination of employment on completion of contract period be

termed as retrenchment?

• Can a worker be entitled for reinstatement with full wages and

continuity of service if retrenchment compensation is not paid?

• Is it mandatory to pay retrenchment compensation if the worker has

not completed 240 days of work?

• Reducing number of conductors in SRTC of a state without given

notice u/s 9A of I D Act but making retrenchment compensation and
salary for notice period, is retrenchment legal?

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 PROBLEMS: Strike

• Is right to strike a fundamental right?

• Irrespective of strike being legal or illegal, whether the employer has

a right to deduct wages?

• Is it necessary to declare strike illegal for initiating disciplinary

proceedings against workers?

• Do the striking workers have a right to force other non-striking

workers to stop working?

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