Labour Law / Answer in Short / 2 marks answers (2022-23)

By Jigar Ashar

❖ Industrial Disputes Act, 1947

1. What is an Industry? / What do you mean by Industry? / Define Industry. / Explain Industry.
- The term “industry” as defined in Section 2(j) of the Industrial Disputes Act, 1947 is as
follows : “Industry” means any business, trade, undertaking, manufacture, or calling of
employers and includes any calling, service, employment, handicraft or industrial occupation
or avocation of workman”.
- 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.

2. What is Illegal Strike or Lockout?

- A strike or a lock-out shall be illegal if:
(i) it is commenced or declared in contravention of section 22 or section 23; or
(ii) it is continued in contravention of an order made under sub- section (3) of section 10 1
or sub- section (4A) of section 10A].

3. Lay-off: [Section 2(kkk)]

- The term ‘lay-off’ has been defined as the failure, refusal or inability of an employer on
account of the shortage of coal, power or raw materials or the accumulation of stocks or the
breakdown of machinery or natural calamity or for any other unconnected reason to give
employment to a workman whose name is borne on the muster rolls of his industrial
establishment and who has not been retrenched.
- Essentially, a lay-off is a condition where the employers are constrained to deny work to
their workforce owing to conditions that bring forth a temporary inability to keep their
business going. The said case scenario can happen only in a continuing establishment.

4. Essentials of Lay-off:
- There has to be a failure, refusal or inability of an employer
- This failure, refusal or inability should be an offshoot of the shortage of coal, power or raw
materials or the accumulation of stocks or the breakdown of machinery or natural calamity
or for any other unconnected reason
- The names of the laid-off workers should necessarily feature on the muster rolls of the
establishment
- The said workers should not have been retrenched

5. What is Industrial Dispute?

- Industrial dispute means any dispute of difference between employees and employers or
between employers and workmen or between workmen and workmen, which is connected
with the employment or non-employment of the terms of employment or the conditions of
work of any person (The industrial Disputes Act 1947, Section 2K).
Labour Law / Answer in Short / 2 marks answers (2022-23)
By Jigar Ashar

- Every human being (say a labour) has certain requirements/needs e.g., economic needs,
social needs, security requirements. When these requirements do not get satisfied, there
arises a conflict between the worker and the capitalist/employer.
- The industrial disputes are of two types i.e., individual disputes and collective disputes. The
individual disputes may be disputes such as reinstatement, compensation for wrong
termination etc. Disputes relating to wages, bonus, profit sharing hours of work etc. are
collective disputes.

6. What is a Strike? [Section 2(q)]

- According to Section 2(q) of Industrial Disputes Act 1947, a strike is “a cessation of work by a
body of persons employed in an industry acting in combination; or a concerted refusal of
any number of persons who are or have been so employed to continue to work or to accept
employment; or a refusal under a common understanding of any number of such persons to
continue to work or to accept employment”.
- This definition throws light on a few aspects of a strike. Firstly, a strike is a referred to as
stoppage of work by a group of workers employed in a particular industry. Secondly, it also
includes the refusal of a number of employees to continue work under their employer.
- In a strike, a group of workers agree to stop working to protest against something they think
is unfair where they work. Labours withhold their services in order to pressurize their
employment or government to meet their demands. Demands made by strikers can range
from asking for higher wages or better benefits to seeking changes in the workplace
environment. Strikes sometimes occur so that employers listen more carefully to the
workers and address their problems.

7. Types of Strikes
- According to Industrial Disputes Act 1947, Strike [Sec. 2 (q)]: Strike means "a cessation of
work by a body of persons employed in any industry acting in combination or a concerted
refusal under a common understanding of any number of persons who are or have been so
employed, to continue to work or to accept employment". Mere stoppage of work does not
come within the meaning of strike unless it can be shown that such stoppage of work was a
concerted action for the enforcement of an industrial demand.
- Following are different types of strikes:
i. Economic Strike
ii. Sympathetic Strike
iii. General Strike
iv. Sit down Strike
v. Slow Down Strike
vi. Hunger strike
vii. Wild cat strikes
viii. All-out strike

8. Notice of Change? (Section 9A)

- No employer, who proposes to effect any change in the conditions of service applicable to
any workman in respect of any matter specified in the Fourth Schedule, shall effect such
change
Labour Law / Answer in Short / 2 marks answers (2022-23)
By Jigar Ashar

a) without giving to the workman likely to be affected by such change a notice in the
prescribed manner of the nature of the change proposed to be affected; or
b) within twenty-one days of giving such notice:
- provided that no notice shall be required for effecting any such change:
i. Where the change is affected in pursuance of any [settlement or award]; or
ii. Where the workmen likely to be affected by the change are persons to whom the
Fundamental and Supplementary Rules, Civil Services (Classification, Control and
Appeal) Rules, Civil Services (Temporary Service) Rules, Revised Leave Rules, Civil
Service Regulations, Civilians in Defence Services (Classification, Control and Appeal)
Rules or the Indian Railway Establishment Code or any other rules or regulations
that may be notified in this behalf by the appropriate Government in the Official
Gazette, apply.

9. Difference between Strikes and Lockout

- A strike is a form of industrial action taken by workers to protest against their working
conditions or pay. Workers refuse to work until their demands are met.
- On the other hand, lockouts are industrial actions taken by employers to prevent workers
from entering the workplace. Usually, this is done following a strike, or as a negotiating
tactic to force workers to accept demands from the employer. In summary, a strike is a
worker action, whereas a lockout is an employer action.

Strike Lockout
Action taken by employees Action taken by employer
Employees refuse to work Employer prevents employees from working
Employees demand better wages, Employer enforces changes to wages, benefits, or
benefits, or working conditions working conditions
Employees may picket or protest Employer may hire replacement workers
Legal in most countries Legal in most countries

10. What are the Objectives of the Industrial Disputes Act, 1947?
- The act was drafted to make provision for the investigation and settlement of industrial
disputes and to secure industrial peace and harmony by providing mechanism and
procedure for the investigation and settlement of industrial disputes by conciliation,
arbitration and adjudication which is provided under the statute.
- This Act was passed was with a key objective of “Maintenance of Peaceful work culture in
the Industry in India” which are mentioned under the Statement of Objects & Reasons of
the statute.
- The Act also lays down:
i. The provision for payment of compensation to the workman on account of closure
or lay off or retrenchment.
ii. The procedure for prior permission of appropriate Government for laying off or
retrenching the workers or closing down industrial establishments
iii. The actions to be taken against unfair labour practices on part of an employer or a
trade union or workers.
Labour Law / Answer in Short / 2 marks answers (2022-23)
By Jigar Ashar

11. Unfair Labour Practices

- Unfair labour practices are deceitful practices by either employers or labourers to obtain
profits that are prohibited by the statutes. Unfair labour practices are defined under the
Fifth Schedule, Section 2(ra) of the Industrial Dispute Act, 1947, which was added after the
Industrial Disputes (Amendment) Act, 1982. The Fifth Schedule of the Act listed certain
practices which amount to unfair labour practices, and Sections 25-T and 25-U laid down the
provisions for the same.
- Section 25-T deals with prohibited unfair labour practices. It states that an employer or
worker cannot engage in such activities which are against the welfare and peace of the
employers and labourers as well. This Section also includes registering and unregistering
trade unions. Section 25-U provides a penalty of imprisonment, fine, or both for unfair trade
practices.

12. Triple Test / Bangalore Water Supply vs. A. Rajappa:

- In the case of “Bangalore Water Supply v. A. Rajappa,” a seven-member Judges’ Bench was
constituted to determine the scope of the industry. The triple test working principle was
born in the case that is used to check the validity of different establishments. The Triple Test
has requisites that are as follows:
i. Systematic Activity
ii. Co-operation between the employer and employee
iii. Activity concerned with the production and services
iv. The goods and services produced are by the satisfaction of human wants.
- Here, the industry will not embody any religious services or other work undertaken out of
spiritual bliss. The thing that strikes us is to find whether the profit motive is important or
not. But it stands irrelevant when it comes to any venture. Through the triple test, the focus
is concentrated on the functional part emphasizing the employer-employee relations. An
establishment that is engaged in philanthropic activities does not cease to become an
industry because of it. Thus, if all the above-stated provisions are complied with, then the
undertaking can be termed as an ‘industry’ under section 2(j) of the Industrial Disputes Act,
1947.

13. Dominant Nature Test:

- Criteria for determining dominant nature of undertaking:
- The Supreme Court, in Bangalore Water Supply case laid down the following guidelines for
deciding the dominant nature of an undertaking:
i. Where a complex of activities, some of which qualify for exemption, others do not,
ii. involves the employees in undertaking, some of whom are not “workmen” or some
departments are not productive of goods and services if isolated,
iii. nature of the department will be the true test.
iv. The whole undertaking will be “industry” although those who are not “workmen”
definition may not be benefit by the status.

14. What is Closure in Industrial Disputes Act, 1947

Labour Law / Answer in Short / 2 marks answers (2022-23)
By Jigar Ashar

- The Industrial Disputes Act, 1947, originally does not contain the provisions relating to the
closure of an industry. The provisions relating to the law of closure were inserted in the year
1957 in view of the Supreme Court judgment in case Hariprasad Shivshankar Shukla v/s. A.D.
Diwelkar, AIR 1957 S.C 121
- According to Section 2(cc) of the Industrial Disputes Act, 1947 defines “Closure” as the
permanent closing down of a place of employment or part thereof. Here, the employer is
constrained to close the establishment permanently. Nonetheless, the due procedure has to
be complied with when it comes to rolling out a plan of closure; the said procedure, as set
out by the Act, has been detailed below. These procedures, nonetheless, do not apply to an
undertaking set up for the construction of buildings, bridges, roads, canals, dams or for
other construction work.

15. What is an “Award”?

- According to Section 2(b) of the Industrial Disputes Act, 1947 ‘Award’ means an interim or a
final determination of any Industrial Dispute or of any question relating thereto by any
Labour Court, Industrial Tribunal or National Industrial Tribunal and includes an arbitration
award made under section 10A.
- Ingredients of Award - To constitute Award under Section 2(b) of the Industrial Dispute Act,
1947 the following ingredients are to be satisfied:
a) An Award is an interim or final determination of an industrial dispute.
b) It is an Interim or final determination of any question relating to such dispute.
c) Such interim or final determination is made by any Labour Court, Industrial Tribunal
or National Industrial Tribunal.
d) Award (Judgement) of Arbitrators under section 10A is an award.

16. Who are parties to a Dispute?

- Disputes are always a drawback for any industry. A dispute arises for several reasons, the
most common being the relation between the labourers and their wages.
- It is the conflict of interests between two parties that give rise to a dispute.
- The parties involved in an industrial dispute are the employer and the employee.
- Traditionally speaking, the employees have always been placed on the lower ladder of the
society by the employer presenting a dominating self-being in the position of authority.
- This inequality that has been existing in the industrial domain for a long time now requires
settlement on the part of both the employer and the employee having an equal opportunity
to present their wants.

17. Retrenchment [Section 2(oo)]:

- Definition of Retrenchment is terminating an employee due to the surplus of labour or
incapacity of employees to match the performance standards of the company. The
Industrial Dispute Act, 1947 deals with employment-related disputes in India and Section
2(oo) of the Act states that ‘retrenchment means termination of service of a workman by an
employer for any reason whatsoever, otherwise than as a punishment inflicted by way of
disciplinary action. However, the following are not covered within the definition of
retrenchment:
i. Voluntary retirement of a workman
Labour Law / Answer in Short / 2 marks answers (2022-23)
By Jigar Ashar

ii. Retirement of workmen on reaching the age of superannuation if the employment

agreement contains a provision regarding superannuation
iii. Termination of service of a workman due to the non-renewal of employment
agreement
iv. Termination on grounds of continued ill-health

18. Explain Wages [Section 2(gg)(rr)]

- In Section 2(gg)(rr) of The Industrial Disputes Act, 1947 defines "wages" which means all
remuneration capable of being expressed in terms of money, which would, if the terms of
employment, expressed or implied, were fulfilled, be payable to a workman in respect of his
employment or of work done in such employment, and includes:
i. such allowances (including dearness allowance) as the workman is for the time
being entitled to;
ii. the value of any house accommodation, or of supply of light, water, medical
attendance or other amenity or of any service or of any concessional supply of food-
grains or other articles;
iii. any travelling concession;
iv. any commission payable on the promotion of sales or business or both;] but does
not include:
a) any bonus;
b) any contribution paid or payable by the employer to any pension fund or provident
fund or for the benefit of the workman under any law for the time being in force;\
c) any gratuity payable on the termination of his service;]

19. Who is 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 express or implied, and for the purposes of
any proceeding 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, dischasrge or retrenchment has led to that dispute, 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 a managerial or administrative capacity; or
iv. who, being employed in a supervisory capacity, draws wages exceeding one
thousand six hundred rupees per mensem or exercises, either by the nature of the
duties attached to the office or by reason of the powers vested in him, functions
mainly of a managerial nature.

20. Explain Work Committee. [Section 3]

- Section 3 of the Industrial Dispute Act,1947 provides for the constitution of Works
Committees. The expression 'Works Committee' denotes "A committee comprising of
Labour Law / Answer in Short / 2 marks answers (2022-23)
By Jigar Ashar

representatives from both the parties (for example employer and their employees) to the
Dispute. The appropriate government is empowered to prescribe that works committee
should be constituted in every industrial establishment employing 100 or more workers.
- The main purpose of creating the Works committee is to develop a sense of partnership
between the employee and his workmen