Subject: Labour Law & Industrial Relations

Topic - Industrial Disputes Act 1947

By:
Ravindra Pratap Gupta
Roll No: 79
LLB – 1st Year, 2022-2023
Oriental College of Law
 Meaning Of Industrial Dispute
 According to the Industrial Disputes Act, 1947,
the term '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 non-employment, or the
terms of employment or with the conditions of
labour, of any person“.
Objectives Of Industrial Dispute
Act,1947
1. To provide a suitable machinery for the just, equitable
and peaceful settlement of industrial disputes.
2. To promote measures for securing and preserving amity
and good relations between employers and employees.
3. To prevent illegal strikes and lockouts.
4. To provide relief to workers against layoffs,
retrenchment, wrongful dismissal and victimisation.
5. To promote collective bargaining.
6. To ameliorate the conditions of workers.
7. To avoid unfair labour practices.
 Reasons/Causes of Industrial Disputes
1) Demand for higher wages and allowances.

2) Demand for payment of bonus and determination of its rate thereof.

3) Demand for higher social security benefits.

4) Demand for good and safer working conditions, including length of a

5) Demand for improved labour welfare and other benefits. For example,
adequate canteen, rest, recreation and accommodation facility,
arrangements for travel to and from distant place’s, etc.
 Methods For Settlement Of Industrial
Disputes
1. Conciliation
2. Arbitration
3. Adjudication
 Conciliation
 Conciliation is the “practice by which the services of a
neutral party are used in a dispute as a means of helping the
disputing parties to reduce the extent of their differences
and to arrive at an amicable settlement of agreed solution.”
 The Industrial Disputes Act, 1947 provides for
“Conciliation Officer or A Board of Conciliation”.
 Arbitration
 Arbitration is a process in which the conflicting parties agree
to refer their dispute to a neutral third party known as
‘Arbitrator’. Arbitration differs from conciliation in the sense
that in arbitration the arbitrator gives his judgment on a
dispute while in conciliation, the conciliator disputing
parties to reach at a decision.
 Adjudication
 Adjudication: The ultimate legal remedy for the settlement
of an unresolved dispute is its reference to adjudication by
the government. The government can refer the dispute to
adjudication with or without the consent of the disputing
parties. When the dispute is referred to adjudication with
the consent of the disputing parties, it is called ‘voluntary
adjudication.’ When the government herself refers the
dispute to adjudication without consulting the concerned
parties, it is known as ‘compulsory adjudication.
Three-tier machinery for the adjudication
of industrial disputes

 1. Labour Court
 2. Industrial Tribunal
 3. National Tribunal
 Labour Court
 Under Section 7 of the Industrial Disputes Act, 1947, the
appropriate Government by notifying in the official Gazette,
may constitute Labour Court for adjudication of the
industrial disputes.
 The labour court consists of one independent person who is
the presiding officer or has been a judge of a High Court, or
has been a district judge or additional district judge for not
less than 3 years, or has been a presiding officer of a labour
court for not less than 5 years.
 The labour court deals with the matters specified in the
second schedule of the Industrial Disputes Act, 1947.
Issues that come under Labour Court
 1. The property or legality of an employer to pass an order
under the standing orders.
 2. The application and interpretation of standing orders.
 3. Discharge or dismissal of workers including
reinstatement or grant of relief to workmen wrongfully
dismissed.
 4. Withdrawal of any statutory concession or
privilege.
 5. Illegality or otherwise of a strike or lockout.
 6. All matters other than those reserved for
industrial tribunals.
 Industrial Tribunal
 Under Section 7A of the Act, the appropriate Government
may constitute one or more Industrial tribunals for the
adjudication of industrial disputes. Compared to labour
court, industrial tribunals have a wider jurisdiction. An
industrial tribunal is also constituted for a limited period for
a particular dispute on an adhoc basis.
 Issues that come under Industrial
Tribunal
 1. Wages, including the period and mode of payment.
 2. Compensatory and other allowances.
 3. Hours of work and rest periods.
 4. Leave with wages and holidays.
 5. Bonus, profit sharing, provident fund, and gratuity.
 6. Classification by grades.
 7. Rules of discipline.
 8. Rationalisation.
 9. Retrenchment of employees and closure of an
establishment or undertaking.
 10. Any other matter that can be prescribed.
 National Tribunal
 This is the third one man adjudicatory body
appointed by the Central Government by
notification in the Official Gazette for the
adjudication of industrial disputes of national
importance. The central Government may, if it
thinks fit, appoint two persons as assessors to
advise the National Tribunal. When a national
tribunal has been referred to, no labour court or
industrial tribunal shall have any jurisdiction to
adjudicate upon such matter.
Thank You.