Industrial Dispute Act 1947

 Introduction
 Object
 Applicability
 Important Definitions
 Authorities
 Awards
 Settlement
 Strike
 Lockout
 Lay off
 Retrenchment
 Closure
 Introduction

Industrial Dispute Act 1947:

It provides for investigation, settlement of

Industrial Disputes and for maintaining
industrial harmony.

It is enacted to ensure justice to both

employer and workmen and to bring the
progress of industry by brining cordial
relationship between parties.
 Objective of the Act

 The objective of Industrial relation legislation in general

are to maintain industrial peace and to achieve
economic justice.

 Principal Objectives are

 The promotion of measure for securing and preserving
amity and good relation between employers and
workmen.
 Investigation and settlement of Industrial dispute.
 The prevention of illegal strikes and Lock outs
 Relief to workmen in the matter of Layoff retrenchment
and closure of an undertaking.
 Promote Collective Bargaining
 Applicability of Law

Extended to whole of India

Applies to every industrial establishment
carrying on any business trade , manufacture
or distribution of goods and services
irrespective of number of workmen employed
therein.
Every person employed in an establishment
for hire or reward including contractual
labour.
This Act though does not apply to person
mainly in managerial or administrative
capacity.
 Definitions

Appropriate Government : Central govt and also the

state Government are given power and duties.
Arbitrator : Arbitrator Includes Umpire
Average Pay: Mean the average wage payable to a
workman
In case of monthly wage worker : Average of 3 Month
wages in three completed calendar year.
In case of weekly paid workman: Average of 4 completed
weeks.
In case for daily paid wages: Average wage of 12 full
working days.
Award: Means an interim or final determination of any
industrial dispute.
 Definition

Banking Company : Business of banking

Board: Board of conciliation constituted
under the act
Conciliation Officer : Conciliation officer
appointed under the Act.
Conciliation Proceedings : Any proceeding
held by the conciliation officer.
 Executive: Mean any body by whatever
name called to which by management of the
affairs of the trade Union entrusted.
 Definition

 Industry : Industry means any business trade undertaking manufacture

or nay service, employment, handicraft or industrial occupation or
vocation of workmen.
 Industrial Dispute :
 A dispute or difference between:
 Employer and Employer
 Employer and Workmen
 Workman and Workmen

 The dispute or difference should be connected with

 A) Employment or Non employment
 B)Terms of Employment
 C)Conditions of labour of any person.

 The dispute may be in relation to any workman or workmen or any other

person in whom they are interested as a body.
 Definition

Industrial Establishment or Undertaking : It

means an establishment or undertaking in
which any industry is carried on in an
establishment or undertaking and only one or
some of such activity.
Labour Court :
Lay off: Means putting aside workmen
temporarily. The duration of lay off should
not be for a period longer then the period of
emergency.
Lay off is merely suspending during the
period of emergency.
 Authorities

The Act may be classified under three heads

1: Conciliation
2: Adjudication
3: Arbitration

Authorities that make use of Conciliation on

the sole method of settlement of dispute.
Works Committee
Conciliation Officer
Board of Conciliation
 Authorities

Adjudicating Authority that decides any

dispute under the Act.
 Court of Inquiry
The Labour court
Industrial Tribunal
National Tribunal
 Work Committee

The work committee is considered to be

powerful social institution.
In the case of an Industrial establishment in
which 100 or more workmen are employed or
have been employed.
Will consist of Workmen and Employer.
The number of representative of workmen on
Work Committee shall be not less then the
representative of the employer
 Conciliation officers

Appropriate Government shall appoint, for

one or more then one industries, either
permanent or temporary.

His duty is to hold conciliation proceedings

for the purpose of bringing fair and
amicable settlement procedure.
 Power of Conciliation officer

Enter the premises occupied by the

establishment which the dispute relates.
Call for and Inspect document
Same power vested as civil court
Shall be deemed to be public servant
 Duties of Conciliation Officer

Hold Conciliation Proceedings

Come to a fair and amicable settlement of the
dispute.
Report settlement signed by the parties to
dispute
If settlement cannot be arrived, he will
explain to the appropriate government why
conciliation cannot happen.
Conciliation report to be submitted within 14
days
 Board of Conciliation

Board shall consist of Chairman and two or

Four other member as the appropriate
Government think fit.
Quorum of Meeting is two
Power same as conciliation officer
 Court of Enquiry

Court of Enquiry for inquiring any matter

appearing to be connected with industrial
dispute.
It may have one ore more then one as
Appropriate government decides
Where more then one member, one of them shall
be appointed as chairman
Court must act with prescribed quorum
Court must enquire the matter within 6 months.
Member of court shall be public servant.
 Duties of Court of Enquiry

To look after the matter referred to it ,

inquire then matter and present the report
within 6 months.
The report of the court of Inquiry shall be in
writing and be signed by all the members.
 Labour Court

The appropriate government may by

notification in the official Gazette constitution
of one or more labour Courts for adjudication
of Industrial dispute.

Function of labour Court

Adjudication of Industrial disputes
Perform other functions as may be assigned
to them
 Qualification Judge

Judge of High Court

Judge of District court for 3 years
Chairman of any other member tribunals for
not less then 7 years
President Officer of a labour Court
constituted under any provincial Act for not
less then 5 years
 Power of Labour court

Labour court may follow such procedure as it

may think fit.
Enter the premises where dispute has
accrued
Labour court has power same as Civil court
Labour court or National Tribunal may
appoint one or more person having special
knowledge as an assessor to advise it.
 Duties of Labour Court

Adjudication
Adjudication expeditiously
Shall submit award to appropriate
Government
The award of labour court shall be in writing
and be signed by its presiding officer.

Every awards of labour Court shall within

period of 30 days from receipt by appropriate
government must be publishing in official
Gazette.
 Tribunal

The tribunal shall consist of one person to be

appointed by the appropriate government.

Qualifications:
Judge of High Court
District Court Judge for 3 years

Only experienced person of high integrity can

be appointed as presiding officer of the
tribunal
 Matters taken in Tribunal

Wages including the period and mode of

Payment
Compensatory and other allowance
Hours of work and rest intervals
Leave with wages and holidays
Bonus profit sharing , provident fund,
gratuity
Classification of grade
Rule of discipline
 Industrial Tribunal

Industrial tribunal is the judicial body or at any rate a

quasi-judicial body
Appropriate government may setup one or more
industrial tribunal for adjudication.

Power Vested
Enforcing the attendance of any person and
examining him on oath.
Compelling the production of document and material
object.
Issuing commissions for the examination of witness
and such matter as may be prescribed.
 National Tribunal

Central Government may by notification in the

official Gazette constitute one or more National
tribunal for adjudication of industrial dispute.

 National tribunal consists of one person only to

be appointed by the central government
Qualification: Judge of high Court
Central government may appoint two assessors to
advice the National Tribunal in proceeding before
it.
Maximum Age : 65 years
 Power of National Tribunal

As per rules he has to perform its duties, he may follow

such procedure as the arbitrator or other authority
concerned may think fit.
Give Notice, Enter premises occupied by the
establishment.
It shall have all the power which are vested to Civil
Court.
In case if tribunal thinks fit it can appoint one or more
person having special knowledge of the matter under
consideration as assessor.
President officer of National Tribunal Shall be deemed
to be a public servant.

 Grievance Redressal Machinery

Every Industry with more then 20 workman

Equal number of Members from employer
and employee
Chairman shall from employer and workman
both
Members should not exceed 6
If practicable one women
Setting up of grievance committee shall not
affect the rights of the workman.
Need to dispose the case within One Month
 AWARD

 Award means interim or final determination of any industrial

dispute or any question there to by any labour court,
 The provisions relating to ward as follows
 The decision of an Authority in an industrial dispute is known as
award
 Award means an interim of final determination of any industrial
dispute.
 Award become enforceable on the expiry of 30 days from the date
of publication
 Awards given is binding on all the parties of industrial dispute
 Award remains in operation for a period of 1 Year.
 Even after notice the term of award it still continues to remain in
force until they are replaced by new award.
 Award which is published shall be final and shall not be called in
question by any court in any manner whatsoever.
 Strike

Strike means employees collectively refuse to work

at workplace. The act has defined strike as
Cessation of work by a body of person in industry
acting in combination or a concerned refusal or a
refusal under common understanding of any
number of person who are or have been so
employed to continue to work or accept
employment.

There are different types of strike like – Pen down,

tool down, stay in, sit down, go slow, hunger strike
etc.
 Legal and Illegal Strike

Under sec 22 strike and lockout are

prohibited. The conditions in this section are
mandatory.

Industry Classified: 2 Groups

Public Utility Services
Such industries which are not included within
the meaning of public utility services
 Prohibition of Strikes and Lockouts

No person employed in a public utility service

go on strike in breach of contract.

Without giving notice within 6 weeks before

strike
With 14 days of giving notice
Before the expiry of the date of strike
specified in any such notice
During the pendency and 7 days after the
conclusion of such proceedings.
 General Provisions of Strikes and
Lockouts

 No workmen who are employed in any industrial

establishment shall go on strike in breach of contract and on
employer of any such workmen shall declare lock out.
 During pendency of arbitration proceeding before board
and 7 days after its conclusion
 During the pendency of Proceedings before labour court,
tribunal and National Tribunal and 2 Months after its
conclusion.
 During pendency of arbitration proceedings before an
arbitrator and 2 month after completion of such proceedings
 During the period of which a settlement or award is in
operation in respect of matter covered by such settlement or
award
 Lock Out

Lock out is always from employer side.

Employer shuts down the workplace as a
punishment for employee or to threaten the
employee.

Lock under Sec2(1) means the temporary

closing of a place of employment or
suspension of work or refusal by an employer
to continue to employ any number of person
employed by him.
Prohibition of Lock out in Public Utility Services

No Employer carrying on any public utility services

shall lock out ant of his workmen _
Without giving notice of lock out in the prescribed
manner within 6 week before locking out.
Within 14 Days of giving such notice
Before expiry of date of lock out mentioned in the
notice or
During pendency of Conciliation proceedings before
conciliation officers and 7 days of giving such notice
Notice must be given in the prescribed manner
It must be reported to appropriate Government
 General Prohibition of Lockouts

No employer of any workman shall declare lock out

During pendency of arbitration proceeding before

board and 7 days after its conclusion
During the pendency of Proceedings before labour court,
tribunal and National Tribunal and 2 Months after its
conclusion.
During pendency of arbitration proceedings before an
arbitrator and 2 month after completion of such
proceedings
During the period of which a settlement or award is in
operation in respect of matter covered by such
settlement or award
 Illegal Lock out

A lockout shall be illegal if-

It is declared in contravention of (Sec 22) or
(Sec 23)
It is continued in contravention of an order
made under the Act
A lock out declared in consequence of an
illegal strike shall not be deemed to be illegal
 Prohibition of Financial Aid

No Person shall knowingly express or apply

any money in direct furtherance or support of
any illegal lock out

Penalty for illegal lock out – any employer

who commences continues or other wise act
in furtherance or support of any illegal lock
out shall be punished with imprisonment
maximum 1 month or with fine maximum
Rs.1000 or with both.
 Lay Off

Lay off means

The failure, refusal or in ability of an
employer on account of shortage of , coal,
power or raw material, break down of
machinery, accumulation of stock, for any
other connected reason to give employment
to workman whose name is borne on the
muster roles of his
 Ingredients of Layoff

Employer inspite of willing to employ fails or

refuses or is unable to provide employment.
Failure or refusal can be due to any of the reason
Shortage of Coal, Power, Or raw material
The accumulation of stock
The breakdown of Machinery
Natural Calamity
Any other connected reasons
Workman name must be on muster roll
Worker must not be retrenched
 Rules relating to layoff

The payment of compensation for layoff is

dependent upon
Status of a workman i.e. badli, casual or
permanent
Type of service i.e. continuous service or not
Number of workmen in an Industrial
establishment
 Rule

Badli Worker
Continuous Service
Uninterrupted Service including
Number of Workmen less than 50 - No Rules
apply for layoff
Number of workmen 50 or More but less then
100-
Compensation at the rate of 50%
Number of workmen is 100 or More
Compensation is average of per working day for
the preceding 12 month
 Retrenchment

Retrenchment means the termination by the

employer of the service of a workman for any
reason whatsoever, otherwise than as punishment.

But does not includes

Voluntary retirement of the workman or
Retirement of workman on reaching the age of
superannuation if the contract of employment
between the employer and the workman
concerned contains a stipulation
Termination on Ground of continued ill health
 Rules Relating to Retrenchment

Type of Services continues or Not

Number of Workmen employed in any
industry – Group of workmen employed
Number of workmen employed is 100 or
more
 Closure

Every employer who have started his

business he can also take decision to wind up
(closure) his business without violating any
legal provision. In this act closure is defined
follows

Closure : Means the permanent closing down

of place of employment or part thereof.
 Rules Relating to Closure

Type of Service
Number of Worker employed
Number of workmen employed is less than 50
Number of workmen employed is 50 or more
but less then 100
Number of workers employed is 100 or more