Labour
Law
LABOUR LAWS
INDUSTRIAL DISPUTES
As per section 2 (k) of Industrial Disputes Act1947, Industrial
Dispute is defined as any dispute or difference between
employers and employers or between employers and
workmen or between workmen and workmen which is
connected with the employment or non-employment or the
terms employment or with the condition of labour of any
person..
OBJECTIVES
O Promotion of measures for securing and
preserving amity and good relation
between the employers and workers
o Investigation and settlement of industrial
disputes
o Prevention of illegal strikes and lock–outs
o Relief to workmen in the matter of lay–off
and retrenchment
o Promotion of collective bargaining
FEATURES
This act extends to the whole of India including the
state of Jammu and Kashmir
□ It encourages arbitration over the disputes
between employers and employees
□ It between employers and employees to promote
cordial relation
provides
□This Act paved the way for setting up permanent
conciliation machinery at various stages having
definite time limits for conciliation and arbitration
□This Act emphasis on compulsory
adjudication besides conciliation and voluntary
arbitration of Industrial Disputes
The Act empower the Government to make
reference of the dispute to an appropriate
authority ie, Labour court, Industrial tribunal
and National tribunal depending upon the nature
of the dispute either on its own or on the request
of the parties
□The right to strike by the workers and lock–out
by the employees has been subjected to the
restriction as laid down in the Act
□ The act prohibits strikes and lock–outs during
the pending of conciliation and arbitration
proceedings and in public utility service and it
empowers government to take adequate action
Terms under Industrial Disputes Act, 1947
APPROPRIATE GOVERNMENT –Sec 2 (a) •
Refers to Central Government/State Government
ARBITRATOR – Sec2 (AA) •
Referred as an umpire. • It means any person who is appointed to
determine differences and disputes between two parties.
WAGES – Sec 2(RR):-
It means all remuneration capable of being expressed in terms of
money, if the term of employment were fulfilled, be payable to a
workman in respect of his employment or of work done in such
employment.
INDUSTRY- Sec 2(i)
Industry means any systematic activity carried on by co-operation
between an employer and his workmen whether such work men
are employed by such employee directly or by or through any
agency including a contractor for the production, supply or
distribution of goods or services with a view to satisfy human wants
or wishes with a motive to make any gain or profit; not merely
spiritual or religious.
WORKMEN - Sec 2(S)
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 the
terms of employment be express or implied and there should be a
contractual relationship between master and servant.
INDUSTRIAL ESTABLISHMENT- Sec 2(KA) •
Means an establishment or undertaking in which industry is carried
on
PUBLIC UTILITY SERVICE- Sec 2(n) •
Means any industry specified in the First Schedule of Industrial
Disputes Act, 1947, can be declared as Public Utility Service by
government through a notification in the official Gazette for a fixed
period (not more than six month for the first instance)
SETTLEMENT – Sec 2(p)
A written agreement between the employer and
workmen arrived in the course of conciliation proceeding
provided:
• Such agreement has been signed by the parties there to in the
manner prescribed
• A copy has been sent to an officer authorized by the
appropriate government and the conciliation officer.
Authorities under Industrial Dispute Act, 1947
• Works Committee (Sec 3)
• Conciliation Officers (Sec 4)
• Board of Conciliation (Sec 5)
• Court of Inquiry (Sec 6)
• Labour Court (Sec 7)
• Industrial Tribunal (Sec7-A)
• National Tribunal (Sec7-B)
WORKS COMMITTEE (Sec-3)
• Constituted based on appropriate Government order
• Applicable to industrial establishment in which 100 or more
workmen are employed on any day in the preceding 12 months
• Consists of representatives of employees and workmen
engaged in the establishment.
• Number of workmen representatives shall not be less than the
number of employer’s representatives
• Representatives of workmen are selected in consultation with
Trade union
DUTIES
To promote measures for securing and preserving amity and good
relations between the employer and the workmen to comment
upon matters of their common interest or concern.
CONCILIATION OFFICERS (Sec 4) –
The appropriate government, by notification in the official
Gazette appoints a specific number of persons as it think fit to be
as conciliation officers – Conciliation officer may be appointed for
a specified area or for specified industries in specified area either
as permanent or for a limited period – A conciliation officer shall
be deemed to be as a public servant as per Sec. 21 of Indian penal
code 1860.
DUTIES :
1. When any industrial disputes exist, the conciliation officer
should hold conciliation proceedings in a prescribed manner
without delay to have right settlement.
2. Whether settlement is reached or not, the conciliation officer
must submit the report within 14 days of the commencement of
the conciliation proceedings or within the date fixed by the
appropriate government
3. If the report submitted in satisfied to the appropriate
Government, it may or may not refer the dispute to any authority
under the Act. If the Government is not making any reference, it
should record and communicate the reason to the contending
parties
BOARD OF CONCILIATION (Sec5)
The appropriate Government by a notification in the official Gazette
constitutes a Board of Conciliation for promoting the settlement of
an industrial dispute
The Board consists of a Chairman and two or four other members,
as the appropriate government thinks fit
The Chairman shall be an independent person; unconnected with
the dispute
The other members shall be persons appointed in equal number to
represent the parties to the dispute
The person appointed to represent a party shall be appointed on
the recommendation of the party
The appropriate Government appoints a fit person as it thinks, if
any party fails to make a recommendation within a prescribed
period – A Board of Conciliation can act only when a dispute is
referred to it by the Government.
DUTIES
When a dispute has been referred to a Board, it will investigate the
matter affecting the merits and right settlement of the dispute
without delay
Whether settlement is reached or not, the Board must submit the
report within two months of the date on which the dispute was
referred to it
If no settlement is arrived, the Government may refer the dispute
to the labour court, Industrial Tribunal or National Tribunal.
The report of the Board shall be in writing and shall be signed by all
the members of the Board.
The report submitted shall be published by the appropriate
Government within 30 days from the receipt
A Board of Conciliation can only try to bring about a settlement. It
has no power to impose settlement on the parties to the dispute.
COURT OF INQUIRY (Sec 6)
The appropriate Government, by notification in the official Gazette,
constitutes a Court of Inquiry in to any matter relevant to an
Industrial dispute
A Court of Inquiry consists of one independent person or of number
of independent persons as the appropriate Government may think
fit
Court of Inquiry consists of two or more members, one of them
shall be appointed as Chairman
The Court of Inquiry can act under a prescribed quorum; even at the
absence of Chairman
If the service of the chairman is ceased by the Government through
notification, the court shall not act until a new chairman has been
appointed
All members of the court shall be deemed to be public servants
under Sec 21 of the Indian penal code 1860
Every inquiry by a court shall be deemed to be judicial proceeding
A Court of Inquiry has same powers as a civil court under the Code
of Civil Procedure 1908
The court has the right to appoint one or more persons having
special knowledge of the matter of the dispute as an advisor
DUTIES
A Court shall inquire into the matters referred to it and report to
the appropriate government within a period of 6 months from the
commencement of the inquiry
The report of the court shall be in writing and signed by all the
members of the court. Members are free to record their dissent
The report submitted shall be published within a period of 30 days
of its receipt by the Government.
LABOUR COURT (Sec 7)
A labour court consists of one person only to be appointed by the
appropriate Government
2. A person shall not be qualified for appointment as presiding
officer of a labour court unless
a) He is / has been a Judge of a High Court b) He has been as a
District Judge /Additional District Judge for a period not less than
three years c) He has held any judicial office in India for not less
than seven years.
DUTIES
1. Adjudicate upon the industrial disputes relating to any
matter specified in the Second Schedule 2.
2. When an industrial dispute has been referred to a labour
Court for adjudication ,within the specified period, it should
submit award to the appropriate Government
3. It shall be published in such manner as the appropriate
Government thinks fit within a period of 30 days from the
date of its receipt by the appropriate Government
INDUSTRIAL TRIBUNAL (Sec7-A)
4. The appropriate Government by notification in the official
Gazette , constitute one or more industrial tribunals for the
adjudication of industrial disputes relating to any matter
specified in Second or Third Schedule
5. The Tribunal consists of one person to be appointed by the
appropriate Government
6. A person shall not be qualified for appointment as the
presiding officer of an Industrial Tribunal unless a) He is/ has
been a Judge of a High Court b) He has been a District Judge /
Additional District Judge for a period of three years
7. No person shall be appointed to or continue in office of a
presiding officer if
8. He is not an independent person.
DUTIES
• It shall submit its award to the appropriate Government
within a specified period if an industrial dispute is referred
to an Industrial Tribunal
• The award shall be in writing and shall be signed by its presiding
officer
• The award shall be published by the appropriate government
within a period of 30 days in a manner as the appropriate
government thinks fit
• As it is a quasi – judicial body, it must serve notice upon
the parties to the reference by name before making any
award
NATIONAL TRIBUNAL (Sec7-B)
• The Central government ,by notification in the official Gazette
constitute one or more National Industrial Tribunals for the
adjudication of industrial disputes :
• Involving questions of national importance
• Which are of such a nature that industries are more than one
state are likely to be interested in, or affected by, such disputes
• Matters appearing in Second and Third schedule
• A National Tribunal consists of one person to be appointed by
Central Government
• A person shall not be qualified for appointment as a presiding
officer of a National Tribunal unless he is / has been a Judge of High
Court
DUTIES :
• When an industrial dispute is referred to the National Tribunal
for adjudication, it shall submit its award to the appropriate
government
• The award shall be in writing and shall be signed by the
presiding officer of the National Tribunal
• It shall publish the award within a period of 30 days from the
date of its receipt by Central Government
