Overview of

Labour Laws
AVENUES OF DISPUTE RESOLUTION

• Works Committee
• Grievance Redressal Committee
• Conciliation Officer
• Board of Conciliation
• Courts of Inquiry
• Arbitration
• Adjudication
• Labour Courts
• Tribunals
• National Tribunal
WORKS COMMITTEE
Section 3. Works Committee.—
• (1) In the case of any industrial establishment in which one
hundred or more workmen are employed or have been
employed on any day in the preceding twelve months, the
appropriate Government may by general or special order
require the employer to constitute in the prescribed manner a
Works Committee consisting of representatives of employers
and workmen engaged in the establishment so however that
the number of representatives of workmen on the Committee
shall not be less than the number of representatives of the
employer. The representatives of the workmen shall be chosen
in the prescribed manner from among the workmen engaged in
the establishment and in consultation with their trade union, if
any, registered under the Indian Trade Unions Act, 1926

• (2) It shall be the duty of the Works Committee to promote

measures for securing and preserving amity and good relations
between the employer and workmen and, to that end, to
comment upon matters of their common interest or concern
• This is stated in section 3 of the legislation, which states that each
industrial establishment must have a works committee with equal
participation from both the employer and the employee.
• It is to settle the issue in the first instance through the mediation
procedure in the early stages of the conflict. The works committee
also makes remarks on disputed issues from time to time.
• According to the Industrial Disputes Act of India, every employer
should form a works committee if they have more than 100
employees in the organization.
• The works committee members should be comprised of equal
number of workmen (employees) and individuals representing
employers.
• The employer should select the employees in consultation with the
Union (if already formed in the organization).
Features of Works Committee
• The number of members in the committee should be fixed and not more than
20. Here, it is also specified that the members of employers should not be
more than members of employees.

• The representatives from the employer’s side should be selected with the
consent of the employer and these people should be associated with the
organization directly.

• Before the formation of the works committee, the employer should inform the
union if they have one. Further, during elections, two groups should be
formed: one of the union members who want to be a part of the committee
and other non-union members.

• The candidates added to the committee should have worked with the
company for at least 1 year and should have attained a minimum age of 19
years.

• The voters who are voting for committee members should be at least 18
years of age and must have worked in the company for atleast 6 months.

• The Central Government or the equivalent authority holds the right to

The Need for Works Committee Procedure

• The need for the works committee procedure is to reduce the

material differences between both parties.

• The main purpose of the Works Committee to promote measures

for securing and preserving amity and good relations between
the employer and workmen and, to that end, to comment upon
matters of their common interest or concern and endeavour to
compose any material difference of opinion in respect of such
matters.
GRIEVANCE REDRESSAL
COMMITTE
• Section 9C of the Industrial Disputes Act of 1947 illustrates
the setting up of the Grievance Redressal Committee (GRC).
• This committee shall comprise of equal number of members
representing employer and workmen and shall not exceed
more than 6 members
• The Chairperson should be chosen between the employer and
the workmen on a rotational basis alternatively.
• Women representation is a mandate within this committee and
must be proportionate to the total number of members
• This committee must finish the proceedings within 45 days of
receipt of complaint
• If the workman is inclined to appeal against the decision of the
GRC, then they must notify the employer. The employer, within
one month of receiving this appeal , dispose off the same and
send a copy of his decision to the workman concerned.
Section 9C Setting up of Grievance Redressal Machinery.
(l) Every industrial establishment employing twenty or more
workmen shall have one or more Grievance Redressal Committee
for the resolution of disputes arising out of individual grievances.
(2) The Grievance Redressal Committee shall consist of equal
number of members from the employer and the workmen.
(3) The chairperson of the Grievance Redressal Committee shall
be selected from the employer and from among the workmen
alternatively on rotation basis every year.
(4) The total number of members of the Grievance Redressal
Committee shall not exceed more than six:
Provided that there shall be, as far as practicable, one woman member if the
Grievance Redressal Committee has two members and in case the number of
members are more than two, the number of women members may be increased
proportionately.
(5) Notwithstanding anything contained in this section, the setting up of
Grievance Redressal Committee shall not affect the right of the workman to
raise industrial dispute on the same matter under the provisions of this Act.
(6) The Grievance Redressal Committee may complete its proceedings within
forty-five days on receipt of a written application by or on behalf of the
aggrieved party.
(7) The workman who is aggrieved of the decision of the Grievance Redressal
Committee may prefer an appeal to the employer against the decision of
Grievance Redressal Committee and the employer shall, within one month from
the date of receipt of such appeal, dispose off the same and send a copy of his
decision to the workman concerned.
(8) Nothing contained in this section shall apply to the workmen for whom
there is an established Grievance Redressal Mechanism in the establishment
concerned.
 WORKS COMMITTEE GRIEVANCE REDRESSAL COMMITTEE

In case of Work Committee, it is considered as an In Case of Grievance Redressal Committee, it is

authority which has to be constituted with equal handing INDIVIDUAL DISPUTE pertaining to any
representatives from Trade Union and Management single workmen. Say for instance out of hundreds
mainly to discuss and resolve any kind of of workers the grievance may be relating to one
INDUSTRIAL DISPUTE on matters of their single employee. Here the Grievance Settlement
common interest or concern and endeavour to Authority who follows laid down procedure and try
compose any material difference of opinion in to settle the grievance in the shopfloor itself. If it
respect of such matters to ensure cordial Industrial fails then only it can be referred to external bodies.
Relations.
Hence like a Conciliation Officer having powers to
intervene this Internal WC is focusing to discuss
and mutually resolve any kind of difference of
opinion as first remedy in house as a bipartite
entity before it goes to any external conciliation.
It can be any matter of difference of opinion
between employer and employee that might take a
shape of INDUSTRIAL DISPUTE. This committee
handles mostly the Collective Disputes
Subjects. The interest of collective employees
are handled here.
CONCILIATION OFFICER
• The law provides for the appointment of Conciliation Officer by the Government to conciliate between
the parties to the industrial dispute.
• The Conciliation Officer is given the powers of a civil court, whereby he is authorised to call the witness the
parties on oath.
• The conciliation officer can go behind the facts and make judgment which will be binding upon the parties.
• On receiving information about a dispute, the conciliation officer should give formal intimation in
writing to the parties concerned of his intention to commence conciliation proceedings from a
specified date.
• He should then start doing all such things as he thinks fit for the purpose of persuading the parties to
come to fair and amicable settlement of the dispute. In this regard, the industrial disputes act 1947 does
not have any prescribed procedure laid down in the act for the conciliation officer to follow.
• The conciliation officer is required to submit his report to the appropriate government along with the copy
of the settlement arrived at in relation to the dispute or in case conciliation has failed, he has to send a
detailed report giving out the reasons for failure of conciliation.
• The report in either case must be submitted within 14 days of the commencement of conciliation
proceedings or earlier. But the time for submission of the report may be extended by an agreement in
writing of all the parties to the dispute subject to the approval of the conciliation officer.
• If an agreement is reached (called the memorandum of settlement), it remains binding for such period as is
agreed upon by the parties, and if no such period is agreed upon, for a period of six months from the
date on which the memorandum of settlement is signed by the parties to the dispute, and continues to be
binding on the parties after the expiry of the period aforesaid, until the expiry of two months from the date
on which a notice in writing of an intention to terminate the settlement is given by one of the party or
parties to the settlement.
• The appropriate government may, by seeing in the authority,
name such people as it believes fit to be conciliation officials,
delegated of the obligation of intervening and advancing the
settlement of industrial audits.
• An appeasement official might be designated for a
predetermined zone or for explicit industries in a predefined
region or for at least one explicit industry and either for all time
or for a constrained period.
• Section 12 of I.D. Act 1947 provides duties of conciliation
officers. A conciliation officer is required to investigate without
delay the industrial disputes and make efforts to settlement
thereof and for the purpose of bringing about a settlement of the
dispute he may do all such things as he deems fit for the
purpose of bringing parties to come to a fair and amicable
settlement of the disputes.
Section 12 also lists out the duties of the conciliation officers.
(1) Where any industrial dispute exists or is apprehended, the conciliation officer may,
or where the dispute relates to a public utility service and a notice under section 22 has
been given, shall hold conciliation proceedings in the prescribed manner.
(2) The conciliation officer shall, for the purpose of bringing about a settlement of the
dispute, without delay, investigate the dispute and all matters affecting the merits and
the right settlement thereof and may do all such things as he thinks fit for the purpose
of inducing the parties to come to a fair and amicable settlement of the dispute.
(3) If a settlement of the dispute or of any of the matters in dispute is arrived at in the
course of the conciliation proceedings the conciliation officer shall send a report
thereof to the appropriate Government or an officer authorised in this behalf by the
appropriate Government together with a memorandum of the settlement signed by the
parties to the dispute.
(4) If no such settlement is arrived at, the conciliation officer shall, as soon as
practicable after the close of the investigation, send to the appropriate Government a
full report setting forth the steps taken by him for ascertaining the facts and
circumstances relating to the dispute and for bringing about a settlement thereof,
together with a full statement of such facts and circumstances, and the reasons on
account of which, in his opinion, a settlement could not be arrived at.
(5) If, on a consideration of the report referred to in sub-
section (4), the appropriate Government is satisfied that there is a
case for reference to a Board, Labour Court, Tribunal or National
Tribunal, it may make such reference. Where the appropriate
Government does not make such a reference it shall record and
communicate to the parties concerned its reasons therefor.
(6) A report under this section shall be submitted within fourteen
days of the commencement of the conciliation proceedings or
within such shorter period as may be fixed by the appropriate
Government: Provided that, subject to the approval of the
conciliation officer, the time for the submission of the report may
be extended by such period as may be agreed upon in writing by
all the parties to the dispute.
• Whether conciliation is mandatory or discretionary?
• In case of public utility services where a notice under
section 22 of the I D Act, 1947 has been received, the
conciliation officer must necessarily hold immediate
conciliation proceedings for prompt settlement of the
disputes. He has discretion in respect of non-public
utility services.
BOARD OF CONCILIATION
• In case Conciliation Officer fails to resolve the differences between
the parties, the government has the discretion to appoint a Board of
Conciliation. The Board is tripartite and ad hoc body. It consists of a
chairman and two or four other members.
• The chairman is to be an independent person and other members are
nominated in equal number by the parties to the dispute.
• The machinery of the Board is set in motion when a dispute is
referred to it. In other words, the Board does not hold the
conciliation proceedings of its own accord.
• On the dispute being referred to the Board, it is the duty of the Board
to do all things as it thinks fit for the purpose of inducing the parties
to come to a fair and amicable settlement.
• The Board must submit its report to the government within two
months of the date on which the dispute was referred to it. This
period can be further extended by the government by two months.
Sec 5 - Board of Conciliation.
(1) The appropriate Government may as occasion arises by notification in the
Official Gazette constitute a Board of Conciliation for promoting the settlement
of an industrial dispute.
(2) A Board shall consist of a chairman and two or four other members, as the
appropriate Government thinks fit.
(3) The chairman shall be an independent person and the other members shall
be persons appointed in equal numbers to represent the parties to the dispute
and any person appointed to represent a party shall be appointed on the
recommendation of that party:
Provided that, if any party fails to make a recommendation as aforesaid within
the prescribed time, the appropriate Government shall appoint such persons as
it thinks fit to represent that party.
(4) A Board, having the prescribed quorum, may act notwithstanding the
absence of the chairman or any of its members or any vacancy in its number:
Provided that if the appropriate Government notifies the Board that the
services of the chairman or of any other member have ceased to be available,
the Board shall not act until a new chairman or member, as the case may be,
has been appointed.
COURTS OF INQUIRY
• In case of the failure of the conciliation proceedings to settle a
dispute, the government can appoint a Court of Inquiry to
enquire into any matter connected with or relevant to
industrial dispute.
• The court of enquiry may consist of one or more persons to be
decided by the appropriate government.
• The court of enquiry is required to submit its report within a
period of six months from the commencement of enquiry. This
report is subsequently published by the government within 30
days of its receipt.
• Unlike during the period of conciliation, workers’ right to strike,
employers’ right to lockout, and employers’ right to dismiss
workmen, etc. remain unaffected during the proceedings in a
court to enquiry.
•A court of enquiry is different from a Board of Conciliation.
The former aims at inquiring into and revealing the causes of an
industrial dispute. On the other hand, the latter’s basic objective
•While a Board of Conciliation may be constituted for
promoting the settlement of an industrial dispute the
purpose for which a Court of Inquiry may be constituted
is “for enquiring into any matter appearing to be
connected with or relevant to an industrial dispute”.
Sec 6- Courts of Inquiry
(1) The appropriate Government may as occasion arises by
notification in the Official Gazette constitute a Court of Inquiry for
inquiring into any matter appearing to be connected with or
relevant to an industrial dispute.
(2) A Court may consist of one independent person or of such
number of independent persons as the appropriate Government
may think fit and where a Court consists of two or more members,
one of them shall be appointed as the chairman. (constitution)
(3) A Court, having the prescribed quorum, may act
notwithstanding the absence of the chairman or any of its
members or any vacancy in its number:
Provided that, if the appropriate Government notifies the Court
that the services of the chairman have ceased to be available, the
Court shall not act until a new chairman has been appointed.
Section 14- duties of court of
inquiry

•A Court shall inquire into the

matters referred to it and report
thereon to the appropriate
Government ordinarily within
ARBITRATION
• On failure of conciliation proceedings, the conciliation officer may persuade the parties to refer
the dispute to a voluntary arbitrator. Voluntary arbitration refers to getting the disputes settled
through an independent person chosen by the parties involved mutually and voluntarily.
• In other words, arbitration offers an opportunity for a solution of the dispute through an arbitrator
jointly appointed by the parties to the dispute.
• The process of arbitration saves time and money of both the parties which is usually wasted in case of
adjudication.
• The provision for voluntary arbitration was made because of the lengthy legal proceedings and
formalities and resulting delays involved in adjudication. It may, however, be noted that arbitrator is
not vested with any judicial powers.
• The arbitrator derives his powers to settle the dispute from the agreement that parties have made
between themselves regarding the reference of dispute to the arbitrator. The arbitrator should submit
his award to the government. The government will then publish it within 30 days of such submission.
The award would become enforceable on the expiry of 30 days of its publication.
• Voluntary arbitration is one of the democratic ways for setting industrial disputes. It is the best method
for resolving industrial conflicts and is a close supplement to collective bargaining. It not only provides
a voluntary method of settling industrial disputes, but is also a quicker way of settling them.
• It is based on the notion of self-government in industrial relations. Furthermore, it helps to curtail the
protracted proceedings attendant on adjudication, connotes a healthy attitude and a developed
outlook; assists in strengthening the trade union movement and contributes for building up sound and
cordial industrial relations.
• Pros and cons of Arbitration in Industrial Disputes
• It is established by the parties and therefore both parties
have conveyed their faith in the process of arbitration.
• Nature is a flexible and informal process.
• The concept is based on mutual consent of the parties and
hence, therefore, it helps for healthy industrial functions and
relations.
• Delay for settlement of disputes often occurs.
• The arbitration process is expensive and all the expenses are
to be incurred by both labours and the management equally.
• When the arbitrator becomes biased and if he is incompetent
then the Judgment becomes arbitrary.
ADJUDICATION
• The ultimate remedy for the settlement of an industrial dispute is its
reference to adjudication by labour court or tribunals when conciliation
machinery fails to bring about a settlement. Adjudication consists of settling
disputes through intervention by the third party appointed by the
government. The law provides the adjudication to be conducted by the
Labour Court, Industrial Tribunal of National Tribunal.
• A dispute can be referred to adjudication if the employer and the recognised
union agree to do so. A dispute can also be referred to adjudication by the
Government even if there is no consent of the parties in which case it is
called ‘compulsory adjudication’. As mentioned above, the dispute can be
referred to three types of tribunals depending on the nature and facts of
dispute in questions.
These include:
(a) Labour courts,
(b) Industrial tribunals, and
(c) National tribunals.
• The procedure, powers, and provisions regarding commencement of award
and period of operation of award of these three bodies are similar.
• The first two bodies can be set up either by State or Central Government but
the national tribunal can be constituted by the Central Government only,
when it thinks that the adjudication of a dispute is of national importance.
These three bodies are into hierarchical in nature. It is the Government’s
prerogative to refer a dispute to any of these bodies depending on the nature
of dispute.
Labour Court (Section 7):
• A labour court consists of one person only, who is normally a
sitting or an ex-judge of a High Court. It may be constituted by
the appropriate Government for adjudication of disputes which
are mentioned in the second schedule of the Act.
• The issues referred to a labour court may include (second
schedule of the Industrial Dispute Act, 1947):
(i)The propriety or legality of an order passed by an employer
under the standing orders*
(ii) The application and interpretation of standing orders.
(iii) Discharge and dismissal of workmen and grant of relief to
them.
(iv) Withdrawal of any statutory concession or privilege.
(v) Illegality or otherwise of any strike or lockout.
(vi) All matters not specified in the third schedule of Industrial
• Standing Orders means the rules related to
Classification of workmen, working hours, Attendance,
Conditions and Procedure for obtaining Leave and the
authority who may grant leave, Requirement to enter
premises by certain gates, Rights and liabilities of the
employer and workmen arising from Closing and
temporary stoppages of work, Termination and
Suspension or dismissal of the workmen, Means of
redress for workmen against unfair treatment or
wrongful exactions by the employer and Any other
matter relating to industrial establishments in coal
mines as specified in the Schedule of the Industrial
Employment (Standing Orders) Act, 1946.
Powers of labour courts are:
• Discharge or grant of relief to workmen who are
wrongfully employed or dismissed.
• To determine the illegality of a strike or deadlocks.
• Customary concession or privileges are withdrawn by
this court.
• Within the specified period the order referring to the
dispute, its report is to be submitted to the appropriate
government, whenever an industrial dispute
adjudicating by the labour court.
The Industrial Dispute Act, 1947 under Section 7 provides for the
constitution of a labour court.
• The appropriate government in the form of notification in the official
gazette can lead to the constitution of a labour court for resolving the
disputes in an industry.
• The labour court consists of one person who is an independent judge
or a judge of the High court or the District court.
• The judge can also be a former judge of the labour court itself with an
experience of about 5 years.

For the adjudication of industrial disputes relating to the specified matters in

the second schedule of the act, the appropriate government may by
notification constitute one or more labour court.
Industrial Tribunal (Section 7A):
• Like a labour court, an industrial tribunal is also a one-man body. The matters which fall within the jurisdiction
of industrial tribunals are as mentioned in the second schedule or the third schedule of the Act. Obviously,
industrial tribunals have wider jurisdiction than the labour courts.
• Moreover an industrial tribunal, in addition to the presiding officer, can have two assessors to advise him in the
proceedings; the appropriate Government is empowered to appoint the assessors.
• One or more industrial tribunals can be set up by the government. It is not to be considered as a permanent
body but body set up for temporary purpose for hearing on an ad-hoc basis only. As the courts are having wider
jurisdiction, the issues that will be taken into consideration by the courts will also be large in number.
• The duty of the Industrial Tribunal to hold its proceedings fast and submit its report to the state government
within the specified time given.
• The Industrial Tribunal may be referred the following issues:
1. Wages including the period and mode of payment.
2. Compensatory and other allowances.
3. Hours of work and rest intervals.
4. Leave with wages and holidays.
5. Bonus, profit sharing, provident fund and gratuity.
6. Shift working otherwise than in accordance with the standing orders.
7. Rule of discipline.
8.Rationalisation.
9. Retrenchment.
10. Any other matter that may be prescribed.
• Role of Industrial Tribunal
• The Industrial Tribunal is a juridical Tribunal made up of a Chairman and two
members (one representing Workers’ interests and the other Employers’ interests)
drawn up from separate panels in the case of an Industrial Dispute whilst of a
chairman alone in the case of alleged unfair dismissal. It is regulated by the
Employment and Industrial Relations Act 2002 (Cap 452).

The tribunal hears disputes in the public but it may hold private sittings. Statements
of Cases are asked of the parties who are then given an opportunity to support their
cases by oral pleading. Subject to the rules laid down under the Act, the Tribunal is
free to regulate its own procedures but it is expected to observe the rules of natural
justice and to decide on the substantive merits of the case in front of it.

Awards or decisions are binding on both parties. The parties are not free unilaterally
to seek a revision within a year. They may however ask for an interpretation if the
need arises.
• Enforcement of the Tribunal’s decisions vests in the Tribunal itself. The minister
is empowered to ask the tribunal for advice in regard to matters relating to Trade
Disputes.

In cases of unfair dismissal the Tribunal may order re-instatement of the employee or
award compensation.

In its awards the Tribunal is expected to refrain from any decision or consistent with
any law or regulation regarding Conditions of Employment. The Tribunal is forbidden
from encroaching upon the Public Service Commission.

No application fee or court fees are payable. The only real expenses are the
transcripts which are obtained at a reasonable fee from the Law Courts transcribes,
and the fee due to the person assisting the applicant. These fees are stipulated by L.N.
48 of 1986 - Representation Fees Regulations.

The Tribunal Office is housed at the Department of Industrial and Employment

Relations and sittings are held at the Superior Courts.

• Presenting a case to the Industrial Tribunal

A case before the Tribunal must be presented by means of a referral in writing
consisting of a declaration stating the facts of the case. The referral must be
presented in the Registry of the Tribunal at the Maltese Law Courts within four months
from the effective date of the alleged breach.
National Tribunal (Section 7B):
• The Central Government may constitute a national tribunal for
adjudication of disputes as mentioned in the second and third
schedules of the Act or any other matter not mentioned therein
provided in its opinion the industrial dispute involves “questions
of national importance” or “the industrial dispute is of such a
nature that undertakings established in more than one state are
likely to be affected by such a dispute”.
• The Central Government may appoint two assessors to assist the
national tribunal. The award of the tribunal is to be submitted to
the Central Government which has the power to modify or reject
it if it considers it necessary in public interest.
• It should be noted that every award of a Labour Court, Industrial
Tribunal or National Tribunal must be published by the
appropriate Government within 30 days from the date of its
receipt. Unless declared otherwise by the appropriate
government, every award shall come into force on the expiry of
30 days from the date of its publication and shall remain in
• National Tribunal

• The central government may, by notification in the

official Gazette, constitute one or more National
Tribunals for the adjudication of Industrial Disputes in:
• National matters.
• Matters in which industries are more than one
state, or are affected by the outcome of the
dispute.
• The duty of the National Tribunal to hold its
proceedings fast and submit its report to the
central government within the specified time
given.
• Two people according to the choice of the government are appointed
to the role of an assessor in the national tribunal. If a dispute between
two parties of an industry reaches the national tribunal, then both the
labour court and the industrial tribunal loses its jurisdiction over the
matter.
• The Central Government shall appoint a National Tribunal consisting
of one person only.
A person to be appointed a presiding officer of a National Tribunal
must be, or must have been, a judge of a High Court or must have
held the office of the chairman or any other member of the Labour
Appellate Tribunal for a period of not less than two years.