Industrial Disputes Act, 1947

Unit III

Industrial Disputes Act

Came into force with effect from 1st April 1947 Applies to whole of India It has undergone 34 major amendments by the Parliament Objectives of the act
Provide for investigation and settlement of industrial disputes by removing procedural delays Creating efficient statutory machinery for settlement of industrial disputes Promote harmony

Industry
Court Any systematic activity organized or arranged in a manner in which trade or business was generally organized or arranged would be an industry even if it proceeded from charitable motives. Sec 2(j) : Industry means any systematic activity carried on by co-operation between an employer and his workmen (whether directly appointed or through an agent) for production, supply or distribution of goods or services with a view to satisfy human wants or wishes whether or not

Industrial Dispute
Industrial Dispute means 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 nonemployment or the terms of employment or with the conditions of labor of any person.

Workman
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, discharge or retrenchment has led that dispute

Wages
Wages 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 Average Pay : Average of the wages payable to workman
In case of monthly paid workman, 3 calendar months In case of a weekly paid workman, 4 complete weeks In case of a daily paid workman, 12 full working days

Unfair Labor Practice

Specified in Fifth Schedule Introduced by Amendment Act, 1982 Person committing any unfair labor practice is punishable with imprisonment up to 6 months or fine up to Rs.1000 or both

Authorities for settlement of Disputes

For investigation and settlement of industrial disputes by mediation, investigation or formal enquiry, arbitration and adjudication Works Committee Conciliation Officer Boards of Conciliation Courts of Inquiry Labor Courts Industrial Tribunal National Tribunal

Works Committee
Constituted by employer where 100 or more workmen are employed or have been employed on any day in preceding 12 months Consists of representatives of employers and workmen in equal number Choosing workmen representatives : consultation with the registered trade union of the employees Duties : promote measures for securing and preserving amity and good relations between the employer and workmen

Conciliation Officers
Appropriate Government may appoint by notification in the Official Gazette May be appointed for a specific area or specified industries in a specified area or for one or more specified industries either permanently or for a limited period Duties
To hold conciliation proceedings To investigate industrial dispute To report the same to appropriate Government within 14 days of commencement of conciliation proceedings

Conciliation Officers
Powers
Enter premises occupied by any establishment to which dispute relates after giving reasonable notice To enforce attendance of any person for purpose of examination or for inspection of documents

Importance
Strike and lock out prohibited when conciliation proceedings are pending Alteration of conditions of service by employer is forbidden when conciliation proceedings are pending

Boards of Conciliation
Appropriate Government constitutes Board of Conciliation, by notification in the Official Gazette Consist of a chairman and two or four other members appointed in equal number to represent parties to the dispute Chairman should be an independent person

Boards of Conciliation
Duties of the Board
To bring a settlement Report to the Appropriate Govt. , together with memorandum of settlement signed by the parties to the dispute Submit report within 2 months of date on which dispute was referred

Boards of Conciliation
Powers of Boards of Conciliation
May enter premises occupied by any establishment after giving reasonable notice Enforce attendance of any person and examine him on oath Compel production of documents and material objects Call for and examine witness

Court of Enquiry
Constitution : Appointed by Appropriate Govt. by notification in Official Gazette Duties of Court of Enquiry
Inquire matters referred to it Report within 6 months from commencement of its enquiry Report signed by all members and dissent is also recorded Appropriate Govt. to publish the report within 30 days from the date of receipt

Court of Enquiry
Powers of Courts of Enquiry
Can appoint assessors having special knowledge to advise it in proceedings Same as Board of Conciliation

Labor Court
Appropriate Government constitutes one or more for the adjudication of industrial disputes specified in 2nd Schedule Consists of 1 person appointed by Appropriate Govt. Duties of Labor Court
Adjudication of industrial disputes Performing functions assigned Submit award with the period specified in the order Award must be in writing and signed by presiding officer

Labor Court
Jurisdiction of Labor Court
Specified in Second Schedule

Powers of Labor Court

Same as Court of Enquiry Determine by and to whom and to what extent and subject to what conditions the costs incidental to proceedings before the Labor Court are to be paid Deemed to be a Civil Court

Industrial Tribunals
Appropriate Government constitutes 1 or more Industrial Tribunals for adjudication of industrial disputes relating to matter specified in 2nd or 3rd Schedule Constitution to be notified in Official Gazette Only 1 person called Presiding Officer Duties of Industrial Tribunal
Same functions as those of Labor Court Submit award within time specified in order

Industrial Tribunal
Powers of Industrial Tribunal
Same as those of a Labor Court Quasi-Judicial machinery

National Tribunal
Constituted by Central Government by notification in Official Gazette Issues involving questions of national importance or are of such nature that establishments are situated in more than 1 state : are dealt by National Tribunal Powers of National Tribunal are similar to those of Industrial Tribunal

Strikes
Cessation of work by a body of persons employed in any industry acting in combination, or a concerted refusal or a 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 Strikes does not by itself terminate the relationship between employer and employee

Lock Out
Temporary closing of a place of employment or the suspension of work or the refusal by an employer to continue to employ any number of persons employed by him Strikes and Lock Outs are tools in the hands of the labor and employer in the process of collective bargaining. During the pendency of proceedings in any of the machinery set up under this Act strikes and lock outs have to be prohibited

Lay Off
Lay-off means the failure, refusal or inability of an employer, on account of shortage of coal, power or raw materials or the accumulation of stock or the breakdown of machinery or natural calamity or for any other connected reason, to give employment of a workman whose name is borne on the muster rolls of his industrial establishment and who has not been retrenched

Retrenchment
Retrenchment means the termination of a workman for any reason whatsoever, otherwise than as a punishment inflicted by way of disciplinary action, but does not include:
Voluntary retirement of the workman or Retirement of the workman on reaching the age of superannuation Termination of the service of workman on the ground of continued ill-health

Closure
Right to close a business is an integral part of the fundamental right to carry on business It can be restricted, regulated or controlled by law in the interest of general public the right to close business Apply to appropriate government atleast 90 days before intended closure