The Industrial Disputes

Act

1947
 What is an Industry?
Section 2(j)
 Industry means any business, trade, undertaking,
manufacture or calling of employers and includes
any calling, service, employment, and handicraft of
industrial occupation or avocation of workmen .
Business Calling
Trade Services
Undertaking Employment
Manufacture Handicraft
Calling of Employers Industrial occupation
Vocation of workers

 Scope of interpretation is very wide

What is an Industry?
Amended in 1982 on Supreme Courts decision of 1978

Industry means any systematic activity carried on by

cooperation between the employer and employees for
production and/or distribution of goods and services
calculated to satisfy human wants and wishes

Profit motive is irrelevant, be it in Public or any other

sector
Nature of activity is relevant with emphasis on
employer-employee relations
Philanthropic activity cannot change the nature of
Organisaton
Case : Bangalore Water Supply & Sewerage Board Vs.
Rajappa
 What is not an Industry?
Judicial interpretations:

Sovereign functions of State – Military, Police,

Judiciary
A Govt. Deptt. Discharging Sovereign Functions
Polytechnic
A small up marketing business
Physical Research Laboratory
Departments of a State
Central Ground Water Board
Agricultural, Religious, Charitable, Domestic work
What is held an Industry?
Judicial interpretations:
 Ordinance Department
 Municipality
 Forest Department
 Cane Farm
 Irrigation department
 Club
 Trade Union
 Hospital
 Charitable Trust
 Telecommunication
 Refugee Projects
 Technical Training Institutes
 Agricultural Produce Marketing
Committees
 Who is a Workman?
Section 2 (s)

 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 for implied

 Workman also refers to any such person who

has been dismissed, discharged, or
retrenched in connection with, or whose
dismissal, discharge or retrenchment has led
to an Industrial dispute
 Who is not a Workman?

 Any person who being employed in a supervisory

capacity, draws wages exceeding Rs. 1600/- per month

 Any person who is employed mainly in a managerial or

administrative capacity

 Any person who exercises functions mainly of

managerial nature

 Any person employed in the Armed Forces or in the

Police Services
 What is Industrial Dispute
Section 2 (k)

Industrial Dispute means

any dispute or difference between
employers and employers or between
employers & workman, or between
workmen & workmen,
which is connected with
the employment or non-employment or
the terms of employment or with
the conditions of labour of any person.
 What is a Public Utility Service
 Any railway or air service for carriage of passengers
or goods;
 Any major port or dock;
 Any section of an industrial establishment on the
working of which the safety of the establishment or
workmen employed therein depends;
 Any postal, telegraph or telephone service;
 Any industry which supplies power, light or water to
the public;
 Any system of public conservancy or sanitation;
 Any industry specified in the First Schedule
 What is in First Schedule
 Transport (other than railways) for carriage of goods or
passengers by land or water;
 Banking, Service in hospitals & dispensaries,
 Cement, Coal, Cotton Textiles, Food Stuffs, Iron &
Steel,
 Defence establishments, Fire Brigade Service,
 Indian Government mints, Currency Note Press, Indian
Security Press, Services in IAAI, Nuclear & Atomic Estts.
 Copper Mining, Lead mining, Zinc Mining, Iron Ore
mining, Phosphorite mining, Magnesite mining
 Service in any Oil field, Service in Uranium Industry,
 Pyrites Mining, Security Paper Mill, Hoshangabad
 What else is a Public Utility Service

Which the appropriate Government may, if satisfied that

public emergency or public interest so requires, declare
to be a public utility service for a specified period not
exceeding six months in the first instance.

The appropriate Government may extend it from time to

time if it deems such extension necessary for any period
not exceeding 6 months at any one time

The choice is limited to First Schedule industries

AUTHORITIES UNDER ID ACT

 Works Committee
 Conciliation Officers
 Board of Conciliation
 Courts of Inquiry
 Labour Courts
 Tribunals
 National Tribunals
 Works Committee
Section 3

 Where 100 or more workmen are employed or have

been employed on any day in the preceding 12 months,
the appropriate government may by order require the
employer to constitute a Works Committee.

 Representatives of workmen engaged in the

establishment cannot be less than the employer’s
representatives.

 Works Committee is to promote measures for securing

and preserving amity and good relations between the
employer and workmen and to that end, to promote
common interest and resolve differences amicably
 Conciliation Officers
Secton 4

 The appropriate Govt. may appoint Conciliation Officers

charged with the duty of mediating in and promoting the
settlement of industrial disputes.

 A Conciliation Officer may be appointed for a specified

area or for specified industries

 The appointment may be permanent or temporary

 Duties of Conciliation Officer
 Where any industrial dispute exists of is apprehended the
conciliation officer may hold conciliation proceedings in the
prescribed manner. In case the dispute relates to any public
utility service and a strike notice has been given he must
hold such proceedings.

 He must investigate the dispute and all matters affecting the

merits and the right of settlement thereof, and try to induce
the parties to come to a fair and amicable settlement.

 Where a settlement of the dispute or any of the matters

therein is arrived at, he must send a report to the Govt.
together with a memorandum of settlement signed by the
parties.
 Duties of Conciliation Officer
 Where no settlement is reached, he must send to the Govt. a
failure report giving all details.

 He must send the report of the settlement or no settlement of the

dispute within 14 days of the commencement of the Conciliation
proceedings or within such shorter period as may be prescribed
by the Govt.

 After considering the report where no settlement is reached if the

appropriate government is satisfied that the case should be
referred to a Board or a Tribunal, it may make such reference.

 If no reference is made it must record and communicate to the

parties concerned the reasons why the reference has not been
made.
 Duties of the Board of Conciliation

 Similar to that of conciliation officers.

 The time limit for submission of its report is two months

from the date on which the dispute was referred to it or
within such period as may be fixed by the appropriate
Government
 POWERS OF AUTHORITIES

1. A conciliation officer or a member of a Board, or Court

or the presiding officer of a Labour Court, Tribunal or
National may enter the premises of any establishment
where a dispute exists or is apprehended after giving
reasonable notice.

2. A conciliation officer may call for and inspect any

relevant documents
 REFERENCE OF DISPUTES
Chapter III, Section 10
1. If an industrial dispute exists or is apprehended,
the Govt. may, by order or in writing refer the dispute to –

a) a Board to promote a settlement of dispute, or

b) a Court of inquiry for inquiry, or
c) a Labour Court for adjudication for any matter related to
Second Schedule, or
d) a Tribunal for adjudication for any matter related to the
Second or Third Schedule.
 Voluntary reference of disputes
for Arbitration
Section 10A

 If the employer and workmen agree, they may refer the

dispute to arbitration at any time before the dispute has
been referred to a Labour Court or Tribunal by a written
agreement.

 In such cases the names of the person or persons to act

as arbitrator or arbitrators must be specified in the
arbitration agreement.
 The Arbitration Act, 1940 is not applicable here
 REFERENCE OF DISPUTES

 An order referring the dispute to a Labour Court, Tribunal

or National Tribunal shall specify the period within which
the award on the dispute shall be submitted to the
appropriate Govt.

 However, when the dispute is connected with individual

workman, such period shall not exceed 3 months.

 Where the dispute relates to any matter specified in the

Third Schedule & is not likely to affect more than 100
workmen, the appropriate Govt. may make the reference
to a Labour Court
 Board of Conciliation
Section 5
 The appropriate Govt. may constitute a Board of Conciliation
for promoting the settlement of an industrial dispute.

 A Board shall consist of a Chairman and two or four other

members, as the appropriate Govt. thinks fit.

 The Chairman shall be an independent person and the other

members shall be persons appointed in equal numbers on
the recommendation of the parties concerned.

 Conciliation proceedings before a Board are similar in nature

to those before a Conciliation Officer.

 Unlike a conciliation officer, the Board has no jurisdiction

until the Government makes a reference to it.
 Courts of Inquiry
Section 6
 The appropriate Govt. may constitute a court of
inquiry for inquiring into any matter appearing to
be connected with or relevant to an industrial
dispute.

 A court may consist of one or more 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
Chairman

 Functioning of the Court is independent of

continuance of Strike or Lockout
 Labour Courts
Section 7

 The appropriate Govt. may constitute one or more

Labour Courts for the adjudication of industrial
disputes relating to matters listed in Second
Schedule
 A Labour Court shall consist of one person only
 To be appointed as Presiding Officer of Labour
Court one should be
 A sitting Judge in High Court or qualified to hold office
 A District Judge or Equivalent for minimum 3 year or
 Held a judicial office in India for at least 7 years or
 Be a Law graduate and held position of ALC for 5 years
 Has been a PO of LC under the State Act for 5 years
 Second Schedule

1. The propriety or legality of an order passed by an

employer under Standing Orders,
2. The application and interpretation of Standing Orders,
3. Discharge or dismissal or workmen including
reinstatement of or grant of relief to workmen wrongfully
dismissed,
4. Withdrawal of any customary concession or privilege,
5. Illegality or otherwise of a strike or lock-out,
6. All matters other than those specified in Third Schedule
7. Matters in Third Schedule for Establishments <100 emp
 Tribunals
Section 7A

 The appropriate Government may constitute one or more

Industrial Tribunals for the adjudication of industrial
disputes relating to any matter, whether specified,
 in the Second or Third Schedule and for
 performing such other functions as may be assigned to them.

 A tribunal consists of one person of a judicial status

appointed by the government.
 The appropriate Govt. may, if it thinks fit, appoint two
persons as assessors to advise the Tribunal in the
proceedings before it
 The Third Schedule
 Wages, including the period and mode of payment,
 Compensatory & other allowances,
 Hours of work and rest intervals,
 Leave with wages & holidays,
 Bonus, profit sharing provident fund and gratuity,
 Shift working otherwise than in accordance with Standing
Orders,
 Classification by grades,
 Rules of discipline,
 Rationalization,
 Retrenchment of workmen and closure of establishments,
 Any other that may be prescribed.
 National Tribunals
Section 7B

 The Central Government may constitute one or more

National Industrial Tribunals if in their opinion;
 There is an industrial dispute of national importance
 The dispute is such that Industrial establishments situated in more
than one state are likely to be affected by it.

 A National Tribunal consists of only one person of high

judicial status appointed by the Central Govt.
 Only those who have held position of Judge in High Court

 The Central Government may appoint two persons as

assessors to advise the National Tribunal in the
proceedings before it.
Disqualifications for appointment as Labour
Court / Tribunals
 The Tribunals being creatures of statute derive
power from statute. The functions of a Tribunal
are quasi-judicial.
 No person shall be appointed to or can continue
as the presiding officer of a Labour Court,
Tribunal or National Tribunal, if:
 He is not an independent person or
 He has attained the age of 65 years
 POWERS OF AUTHORITIES

3. Every Board, Labour Court, Tribunal and National

Tribunal has the powers of a Civil Court when trying a
suit, in respect of the following matters:

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 witnesses.
d) In respect of such other matters as may be prescribed,
 POWERS OF AUTHORITIES

4. When a dispute relating to discharge or

dismissal of a workman has been referred to a
Labour Court, Tribunal or National Tribunal
and the Court, Tribunal or National Tribunal as
the case may be, is satisfied that the discharge
or dismissal was not justified then it may;
 Set aside the order of discharge or dismissal
and direct reinstatement, or
 Give other relief to the workman including the
award of any lesser punishment in lieu of
discharge or dismissal.
 Duties of Courts of Enquiry

To enquire into the matters referred to it

and report there upon to the appropriate
Govt. within six months from the
commencement of its enquiry
Duties of Labour Courts & Tribunals

In case an industrial dispute has been referred

to a Labour Court, Tribunal or National
Tribunal for adjudication, it shall hold its
proceedings expeditiously and submit its
award to the appropriate Govt. as soon as
practicable on the conclusion of the
adjudication
 Settlements will be binding on:

 All parties to the industrial dispute;

 All other parties summoned to appear in the proceedings
as parties to the dispute;
 Until the expiry of two months from the date on which
one of the parties gives notice in writing to the other of its
intention to terminate the settlement,
 All persons who were employed in the establishment on
the date of the dispute and all those who subsequently
become employed.
 Settlement is valid:

 for a period agreed upon by the parties, or

 for a period of six months, if no such date is agreed
upon.
 Until the expiry of two months from the date on which
one of the parties gives notice in writing to the other of
its intention to terminate the settlement,
A settlement come into operation -
 on the date agreed upon by the parties, or
 on the date on which the memorandum is signed,
if no specific date is agreed upon.
 Awards

 An award is binding and will come into operation on the

expiry of 30 days from the date of its publication,
 It will remain in operation for a period of one year from
the date on which the award becomes enforceable.

 The appropriate Govt. may however, reduce or extend

the said period as it thinks fit, but
 the total period of operation of any award should not
exceed three years on which it came into operation.
 Awards

 Where the Labour Court/Tribunal by its `award’ directs

reinstatement of any workman and
the employer moves to the High Court or Supreme Court
against such `award’,
the employer shall pay to the workman full wages last
drawn by him

if the workman files an affidavit that he had not been

employed in any other establishment
A conciliation proceeding is deemed to have
commenced

 On the date on which a notice or strike or

lockout in a public utility service is received
by the Conciliation officer, or

 On the date of referring the dispute to a

Board.
A conciliation proceeding is deemed to have
concluded
 when a memorandum is signed by the parties,

 when the report of the conciliation officer is

received by the govt., if there is no settlement,

 when a dispute is referred to the Labour Court,

Tribunal or National Tribunal by the Govt. during
the pendency of conciliation proceedings
Commencement & Conclusion of
proceedings in Arbitration/Courts/Tribunal
 Proceeding before an arbitrator, Labour Court,
Tribunal or National Tribunal shall be deemed to
have commenced on the date of the reference of
the dispute for arbitration or adjudication.

 Such proceedings shall be deemed to have

concluded on the date on which the award
becomes enforceable
 Representation of Parties in a Dispute
1. A workman who is a party to a dispute is entitled to
be represented in any proceeding under this act by
–
 an office bearer of a registered trade union of which
he is a member; or
 an officer of a federation of trade unions to which
his union is affiliated; or
 if the workman is not a member of any trade union,
an officer of any trade union in the same industry or
any other workman employed in the same industry
who has been authorized in the prescribed manner
 Representation of Parties in a Dispute

2. An employer who is a party to the dispute may

be represented through –

 an officer of an association of employers of which he

is a member; or
 an officer of a federation of associations of employers
to which his association is affiliated; or
 any other employer in the same industry duly
authorized in the prescribed form.
 NOTICE OF CHANGE – Section 9A
Importance of the Fourth Schedule
 No notice of change is required if the change is
made in pursuance of a settlement, award or
decision of the Tribunal

 No change can be made in the conditions of

service of workmen listed in Fourth Schedule
without giving the workmen 21 days notice
 The Fourth Schedule
 Wages including the period and mode of
payment;
 Contribution payable by the employer to
provident fund, pension fund or any other fund
for the benefit of the workmen,
 Compensatory and other allowances.
 Hours of work and rest intervals,
 Leave with wages and holidays,
 Starting, alternation or discontinuance of
shift working other than in accordance with
Standing Orders
 The Fourth Schedule

 Classification by grades,
 Withdrawal of any customary concession or
privilege or change in usage,
 Introduction of new rules of discipline, or alternation
of existing rules, except in so far as they are
provided in the Standing Orders,
 Rationalization, standardization or improvement of
plant technique, which is likely to lead to
retrenchment.
 Any increase or reduction in the number of persons
employed or to be employed (not occasioned by
circumstances over which the employer has no
control).
 STRIKES & LOCK-OUTS

Strike means [under Section 2 (q)]–

a) a cessation of work or refusal to continue to work by
a body of workmen acting in combination, or
b) a concerted refusal under common understanding to
continue to work or to accept employment.
Lock-out means [under Section 2 (L)]–
a) the temporary closing of a place of employment, or
b) the suspension of work, or
c) the refusal of the employer to continue to employ any
number of persons employed by him.
 Strike & Lockout in Public Utility Services

 Workmen in a Public Utility service cannot go on strike

and the employer in a Public Utility Service cannot
declare lock-out –

 without giving six weeks notice in the prescribed form;

 within 14 days of giving notice;
 before the expiry of the date specified in the notice;
 during the pendency of conciliation proceedings and
7 days after their conclusion.
 Other restrictions on Strike/Lockout

 No strike or lock-out can be resorted to in any industrial

establishment –

 during the pendency of a conciliation proceeding and

seven days after its conclusion;
 during the pendency of adjudication or arbitration and
two months after its conclusion;
 during any period in which a settlement or award is in
operation.
 What is Lay off
Section 2 (kkk)
 Lay-off means the failure, refusal or inability of an
employer to give employment to a workman in the
following circumstances:

 shortage of coal, power or raw-materials, or

 accumulation of stocks : or
 breakdown of machinery : or
 natural calamity, or any other connected reason
 Employer’s obligation for laying off
Chapters V – A & B

 Compensation equal to 50% of the basic wages and DA

 Shall be paid to the workman for all days during which he is laid-off,
except for weekly holidays that may intervene, provided
 i) he is in the muster roll of the establishment;
 ii) he is not a `badli’ or `casual’ worker;
 iii) he has completed one year of continuous service
 Continuous period of service includes –
 Number of days by which a worker has been laid-off;
 Leave with full wages;
 Maternity leave not exceeding 12 weeks in case of women
employees’
 Any leave permitted under the Standing Orders or under any law or
award;
 Prior permission necessary to lay off
 No workman shall be laid-off except with the prior permission of
the appropriate Govt. or such authority as may be specified by
that Govt. by notification in the official Gazette.
 The employer has to apply for permission to lay-off workmen in
the prescribed manner stating clearly the reasons for the
intended lay-off and a copy of such application shall be served
simultaneously on the workmen concerned.
 The appropriate Govt. may then after making enquiries into the
genuineness of the case grant or refuse permission to lay-off
 If the appropriate Govt. does not make any communication
within 60 days, the permission applied for shall be deemed to
have been granted on the expiry of two months
 No compensation need be paid if:

 If a workman refuses to accept any alternative

employment in the same establishment or in any other
establishment belonging to the same employer and
situated in the same town or village or situated within a
radius of five or village or situated within a radius of five
miles from the establishment to which he belongs,
provided that the wages in the alternative employment
are the same as the previous one;
 If the workman does not present himself for work at least
once in a day at the fixed time;
 If the lay-off is due to a strike or a slow-down by workmen
in any part of the establishment
 Retrenchment
Section 2 (oo)
 Retrenchment means the termination by the employer of
the services of the workman for any reason what-so-ever
other than –

punishment inflicted by way of disciplinary action;

voluntary retirement;
superannuation;
termination of employment on grounds of ill-health etc.
termination of services of the workman as a result of non
renewal of contract of employment
 No workman who has been employed for one year
can be retrenched until
 he has been given three month’s notice in writing indicating the
reasons and the period of notice has expired or has been paid
wages in lieu of the notice period;

 he has been paid compensation equivalent to 15 days average

pay for every completed year of service or any part thereof in
excess of 6 months.

 The prior permission of the appropriate Govt. or such authority

as may be specified by the Govt. has been obtained on an
application made on this behalf.
 If the appropriate Govt. does not communicate the order granting
or refusing to grant permission within three months, the
permission applied for shall be deemed to have been granted.
 Principle for retrenchment

1. LIFO
When any workman belonging to a particular
category is to be retrenched the employer shall
ordinarily retrench the workman who was the last
person to be employed in that category.

2. Preference is to be given to retrenched

workers when additional hands are required
 CLOSURE
Section 2 (cc)
Closure means the permanent closing down of a place
of employment or part thereof.
 An employer who intends to close down an undertaking has to apply
for permission prior to the date on which the intended closure is to
become effective, stating clearly the reasons for the intended closure.

 A copy of such application shall be simultaneously served on the

representatives of the work-men.

 After making enquiries into the genuineness of the case, the

appropriate Govt. may by order grant or refuse to grant permission
and a copy of such an order shall be communicated to the workmen
and the employer.
 CLOSURE
 If the appropriate Govt. does not give any order within
60 days from the date on which the application was
made the permission applied for shall be deemed to be
granted.

 An order of the appropriate Govt. shall be final and

binding on all the parties and shall remain in force for
one year from the date of such order.

 No such application for permission need be made in an

undertaking set up for the construction of buildings,
bridges, roads, dams or for other construction work.
 CLOSURE

 Where permission for closure has been granted,

every workman who is employed in that undertaking
immediately before the date of application for
permission shall be entitled to receive compensation
equivalent to 15 days’ average pay for every
completed year of service or any part thereof in
excess of 6 months.
 Unfair Labour Practices

 No employer or workmen or a trade union (whether

registered or not) shall commit any unfair labour
practices.

 A list of unfair labour practices on the part of employers

and trade unions of employers and on the part of
workmen and trade unions of workmen has been listed
out in the Fifth Schedule of the Act.

 Any person who commits any unfair labour practice

shall be punishable with imprisonment for a term which
may extend to 6 months or with fine which may extend
to Rs. 1000/- or with both.
 THE FIFTH SCHEDULE
List of unfair labour practice

Employers should not

 interfere / restrain workers to organize for collective
representation
 Contribute financially or otherwise to any trade union
with ill motive and showing partiality / favoritism
 Encourage or discourage to join any trade union
 Take disciplinary action – discharge / dismissal to
suppress unionization, to victimize, without following
due procedure
 Employ casual labour on continuous basis
 Recruit during a legal Strike
 THE FIFTH SCHEDULE
List of unfair labour practice
Trade Unions and Workmen should not
 Instigate illegal strike
 Coerce workmen
 Refuse to enter into collective bargaining
 Stage demonstrations at residences of officers
 Coerce for certification of bargaining representative
status
 Indulge in Gherao of officers after working hours
 Use force / violence against persons or damage property
 PENALTIES

 A workman who commences, continues or acts in furtherance

of an illegal strike shall be punishable with a fine upto Rs. 50/-
or imprisonment up to one month, or both.

 An employer who commences, continues or acts in furtherance

of an illegal lock-out shall be punishable with imprisonment
upto one month or fine upto Rs. 1000/- or both.

 Any person who instigates or incites others, or knowingly

spends money for an illegal strike or lock-out is punishable with
imprisonment upto a period of six months or a fine upto Rs.
1000/- or both.
 PENALTIES

 Any person who commits a breach of any terms of settlement

or award binding on him under this Act, shall be punishable with
imprisonment upto six months or fine or both .

 Where the breach is a continuing one, the fine may extend to

Rs. 200/- for every day during the breach.

 Any employer who closes down any undertaking without

complying with the provisions of this Act shall be punishable with
imprisonment for a term which may extend to six months or with
fine which may extend to Rs. 5000/- or with both.
 PENALTIES

 Anyone violating the provisions of this Act or Rules

made under it is punishable with fine upto Rs. 100/-.

 Where a person committing an offence is a

company or corporate body or an association of
persons every director, manager, agent or office
bearer should be deemed to be guilty of such
offence
 Protected workmen

 A protected workman means a workman who is an officer of

a registered trade union connected with the establishment
and is recognized as such.
 The number of workmen who can be recognized as
protected workmen in any establishment shall be one
percent of the total number of workmen subject to a
minimum of 5 and maximum of 100.
 Where there is more than one trade union in an
establishment the appropriate Govt. may make rules
providing for the distribution of such protected workmen
among various trade unions.
Change in conditions of service, etc. during
pendency of proceedings
Section 33
 During the pendency of any proceeding no employer shall without
obtaining express permission in writing of the authority before whom
the dispute is pending –

alter the conditions of service in regard to any matter connected with

the dispute, or
terminate the services of or otherwise punish any workman for any
misconduct connected with the dispute, or
take any action that might adversely affect protected workmen or
change their service conditions on discharge or punish any of the
protected workman.