School of Law

Module : 2
Industrial dispute Act, 1947 under Industrial
Relation Code 2020
a) Object, Scope and Reasons of Industrial Dispute
Act, 1947
b) Definitions of Important Terms under Industrial
dispute Act, 1947

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Industrial dispute act

• It is an important piece of socio-economic legislation. The object of
the act is to make provision for investigation and settlement of
industrial dispute and for certain other purposes.
• Act is primarily meant for:
(a) regulating the relations between employers and workman, past,
present and future.
(b) encouraging collective bargaining.
(c) Maintaining industrial peace by preventing illegal strikes and
lockouts and to provide for layoff and retrenchment compensation.

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Industrial dispute Act, 1947
OBJECT, SCOPE AND REASONS FOR INDUSTRIAL DISPUTES
ACT 1947
• To Investigate and settle the industrial dispute
• Machinery & procedure for ensuring speedy resolution of
industrial dispute
Case : Workmen of Dimakuchi Tea Estate v. Management of
Dimakuchi Tea Estate (1958)
Case: SN Rai v. Asvwnath Lal
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Industrial dispute act

• It is an important piece of socio-economic legislation. The object of
the act is to make provision for investigation and settlement of
industrial dispute and for certain other purposes.
• Act is primarily meant for:
(a) regulating the relations between employers and workman, past,
present and future.
(b) encouraging collective bargaining.
(c) Maintaining industrial peace by preventing illegal strikes and
lockouts and to provide for layoff and retrenchment compensation.

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Objects of the act:
The preamble – for investigation and settlement of industrial disputes and certain other purposes. Promotion of
measures for securing and preserving amity and good relations between the employers and workmen.
The basic objectives are:
• Provide machinery for just, equitable and peaceful settlement.
• Securing and preserving good relations
• Investigation and settlement of industrial disputes.
• Prevention of illegal strikes and lockouts.
• Relief to workmen in the matter of lay-off and retrenchment.
• Improve conditions for workers
• Promotion of collective bargaining.
• Avoid unfair labour practices
• Ameliorate the condition of workmen.

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Objects as per the apex court
Case of Dimakuchi Tea Estate v. The Management of Dimakuchi Tea Estate{(1958)
SCR 1156}
Case: SN Rai v. Asvwnath Lal
• Promote measures securing and preserving amity and good relations.
• Investigation and settlement of industrial disputes.
• Prevention of illegal strikes and lockouts
• Provide machinery for just, equitable and peaceful settlement.
• Prevention of illegal strikes and lockouts.
• Relief to workmen in the matter of lay-off and retrenchment.
• Improve conditions for workers
• Promotion of collective bargaining.
• Avoid unfair labour practices
• Ameliorate the condition of workmen.

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Continue…
• Application of the Act- All establishments falling within “industry "of the act. All employees falling
under “workmen” as defined under IDA
• Constitution of machinery for investigation and settlement of industrial dispute by Conciliation
Authorities, adjudicatory authorities, arbitrator and court of inquiry. The nature, powers, duties and
functions.
• Compulsory settlement by adjudication- through courts and tribunals
• Speedy disposal of industrial disputes- conciliation officer and Board of Conciliation have to send a
report o f their efforts to bring settlement. The government specifies the time period for adjudication
the awards by courts.
• Enforcement of awards – by appropriate government wholly or partly for not more than one year.
• Regulation of lay-off, retrenchment of the workmen, transfer and closure of the industrial
establishment
• Compensation to workmen- in case of layoffs, retrenchment, transfer or closure. Compensation can be
claimed in one year of continuous service.

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