ID ACT 1947. Complete

8/7/2019 ID ACT 1947. Complete

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While the employer has a fundamental right to run his business, his right has tobe adjusted with the employees right to social justice. The former pertains to

the realm of fundamental rights in our Constitution, the latter to the realm of the Directive Principles. The Ultimate aim is to have peace in industry so that

production may increase and the national economy may grow.Social justice is an application in the field of labour laws of the basic principle

of sociological jurisprudence of harmonising conflicting interests.


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3.1.4 Principles of Social Justice, Social Equality, Social Security,National Economy and Labour Legislations

y Labour Legislations contain the principles of social justice, socialequity, social security and national economy in their concept.

y Social justice implies two things. First, equitable distribution of profitsand other benefits of industry between owner and workers. Second,providing protection to workers against harmful effect to their health,safety and morality.

y Social equality provides the flexibility in labour legislations to adjust tothe ' need of the industrial society.

y Social security envisages collective action against social risks whichconstitute the crux of the labour legislation.

y National Economy provides the standards to be set for the labourlegislations.y Human Rights principles and human dignity postulates provide the

broader base for the concept of labour legislations.y Thus, these principles are the fundamentals for understanding the

concept of Labour jurisprudence.


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3.3 OBJECTIVES OF THE LABOUR

LEGISLATIONSy Labour legislation in India has s ought to achieve the followi ng objectives:

y (1) Establishment of justice- Social, Political and Economic

y (2) Provision of opportunities to all workers, irrespective of caste, creed, religion, beliefs, forthe development of their personality.

y (3) Protection of weaker section in the community.y (4) Maintenance of Industrial Peace.y (5) Creation of conditons for economic growth.

y (6) Protection and improvement of labour standards.

y (7) Protect workers from exploitation:y (8) Guarantee right of workmen to combine and form association or unions.

y (9) Ensure right of workmen to bargain collectively for the betterment of their serviceconditons.

y (10) Make state interfere as protector of social well being rather than to remain an onlooker.

y (11) Ensure human rights and human dignity.


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THE CLASSIFICATION OF LABOUR

LEGISLATIONS

y (1)Regulativey (2) Protectivey (3) Wage-Relatedy (4) Social Security y (5) Welfare both inside and outside the workplacey (6) Miscellaneous


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The Re g l tiv e L rLe gisl ti s

y The main objective of the regulative legislations is to regulate therelations between employees and employers and to provide formethods and manners of settling industrial disputes. Such laws alsoregulate the relationship between the workers and their trade unions,the rights and obligations of the organisations of employers and workers as well as their mutual relationships.

y The Trade Unions Act, 1926

y The Industrial Disputes Act, 1947

y Industiral Relations Legislations enacted by states of Maharashtra, MP,Gujarat, UP etc.

y Industrial Employment (Standing Orders ) Act, 1946.


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The r t e ctiv e L r Le gisl ti sy Under this category come those legislations whose primary purpose is to protect labour

standards and improve the working conditions. Laws laying down the minimum labourstandards in the areas of hours of work, supply, employment of children and women etc.in the factories, mines, plantations, transport, shops and other establishments areincluded in this category. Some of these are the following :

y Factories Act, 1948

y The Mines Act, 1952

y The Plantations Labour Act, 1951

y The Motor Transport Workers Act, 1961

y The Shops and Establishments Acts

y Beedi and Cigar Workers Act 1966


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Wa ge- Re la ted Labou r Le gisl a tion sy Legislations laying down the methods and manner of

wage payment as well as the minimum wages comeunder this category:

y The Payment of Wages Act, 1936

y The Minimum Wages Act, 1948

y The Payment of Bonus Act, 1965

y The Equal Remuneration Act, 1976


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So cia l Se cu rity L abou r Le gisl a tion sy They cover those legislations which intend to provide to the workmen

social security benefits under certain contingencies of life and work.

y The Workmen's Compensation Act, 1923 y The Employees' State Insurance Act, 1948 y The Coal Mines PF Act, 1948.y The Employees PF and Miscellaneous Provisions Act, 1952 y The Maternity Benefit Act, 1961 y Payment of Gratuity Act, 1972

Chapter V A of the Industrial Disputes Act 1947 is also, in a manner of speaking, of the character of social security in so far as its provides forpayment or lay-off, retrenchment and closure compensation.


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W e lf a re Labou r Le gisl a ti on sy The laws coming under this category have the specific aim of providing for the

improvements in living conditions of workers. They also carry the term "Welfare" in theirtitles.

y Limestone and Dolomite Mines Labour Welfare Fund Act, 1972.

y The Mica Mines Welfare Fund Act, 1946

y The Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines Labour WelfareFund Act, 1976

y The Cine Workers Welfare Fund Act, 1981.

y In addition, some state governments have also enacted legislations for welfare funds.

y Beedi Workers Welfare Fund Act, 1976


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M isce llan e ou sy Besides the above there are other kinds of labour laws which are very important. Some of these are :

y The Contract Labour (Regulation & Abolition ) Act, 1970

y Child Labour (Prohibition and Regulation ) Act 1986

y Building and other construction workers (Regulation of Employment and Conditions of Service ) Act 1996

y Apprentices Act 1961

y Emigration Act, 1983

y Employment Exchange (Compulsory Notification of Vacancies ) Act, 1959

y Inter State Migrant Workmen (Regulation of Employment and Condition of Service ) Act, 1979

y Sales Promotion Employees (Condition of Service ) Act 1976

y Working Journalists and other Newspapers Employees (Condition of Service and Miscellaneous Provision ) Act, 1955.


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THE I DUSTRIAL DIS UTES ACT,

9 7y Based on the experiences of Trade Disputes Act, 1929and usefulness of rule 81

(a) of the Defence of India Rules (refer to the bare act ), the bill pertaining toIndustrial Disputes Act, 1947embodied the essential principles of rule 81 (a)

which was acceptable to both employers and workers retaining most parts of the provisions of Trade Disputes Act, 1929.

y This legislation is designed to ensure industrial peace by recourse to a givenform of procedure and machinery for investigation and settlement of industrialdisputes. Its main objective is to provide for a just and equitable settlement of disputes by negotiations, conciliation, voluntary arbitration and adjudicationinstead of by trial of strength through strikes and lock-outs.

y As State Governments are free to have their own labour laws, States likeUP.,MP., Gujarat and Maharashtra have their own legislation for settlement of disputes in their respective states. U.P. legislation is known as U.P. IndustrialDistputes Act, while others have Industrial Relations Act more or less on thelines of 'Bombay Industrial Relations Act, 1946.


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THE RI CI AL OBJECTIVES OF

THE ACT y Promotion of measures for securing amity and good

relations between employer and workmeny

Investigation and settlement of industrial disputesy Prevention of illegal strike and lock-outsy Relief to workmen in the matter of lay-off,

retrenchment and closure of an undertakingy Promotion of Collective Bargaining


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SCO E A D COVERAGEy The Industrial Disputes Act, 1947, extends to the whole

of India, and is applicable to all industrial

establishments employing one or more workmen.y As regards disputes, it covers only collective disputes or

disputes supported by trade unions or by substantialnumber of workers and also individual disputes

relating to termination of service.


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Definitions

y Section 2 (a) defining appropriate Government states, : (a) Inrelation to any industrial disputes concerning any industry carried on by or under the authority of Central Government orby a Railway or concerning any such controlled industry such asmay , be specified or linking or insurance company or oil field ormajor part the Central Government, and (b) In relaltion to otherindustrial disputes the State Government:

y In HEC Majdoor Union Vs. State of Bihar S.C. (1969), it was heldthat in respect of Central Public Sector Undertakings the State

where the factory was situated was the appropriate Government.This decision was changed in Air India case S.C. 1997 where it

was held that in resepct of Central Public Undertakings theappropriate Government is the Central Government. T hisdefinition of appropriate Government is applicable tocontract labour (R&A) Act, 1970 and Payment of Bonus Act,1965.


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2j Industryy The term "Industry" includes not only manufacturing and commercial

establishments but also professionals like that of the lawyers, medicalpractitioners, accountants, architects, etc., clubs, educationalinstitutions like universities, cooperatives, research institutes,

charitable projects and other kindred adventures, if they are beingcarried on as systematic activity organised by cooperation betweenemployers and employees for the production and/or distribution of goods and services calculated to satisfy human wants and wishes.

y It also includes welfare activities or economic adventures or projectsundertaken by the government or statutory bodies, and , Governmentdepartments discharging sovereign functions if there are units whichare industries and which are substantially severable units. ( Judgementdated 21.2.78 in the civil appeals no. 753-754 in the matter of Bangalore

Water Supply & Sewerage Board etc. Vs. Rajappa & Sons, etc. ).


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2k- Industrial

Dispute, 2kkk ,2 l,2n, 200 ,2ra, 2rr, 2sy For purposes of this act the term "dispute " is defined as

dispute or difference between employer s and

employee s, which is connected with the employmentand non-employment or the terms of employment or with the condition of labour of any person.


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y Sec. 2 (s) defines "workman " as any person (including an apprentice ) employedin any industry to do any skilled, unskilled manual, supervisory, operational,technical or clerical work for hire or reward. Whether the terms of employmentbe expressed or employed and for the purposes of any proceedings under thisact in relation to an industrial dispute, includes any such person who has beendismissed, discharged, retrenched in connection with or as a consequence of that dispute or whose dismissal, discharge or retrenchment has led to thatdispute but does not include any such person (i) who is subject to Air Force

Act, Army Act or Navy Act or (ii) who is employed in police service or prisonservice, (iii) who is employed mainly in a managerial and advisory capacity or(iv ) who being employed in supervisory capacity ity draws wages exceedingRs.1600/ - and exercises by the nature of the duties attached to the office or by

means of powers vested in him, functions mainly of a managerial nature.y May and Baker India case S.C. (1976) which led to passing of Sales PromotionEmployees Act, 1976, had been stipulated that sales /medical representativesare not workmen under Sec. 2(s) of ID Act.

y The provisions of ID Act, 1947will be applicable to certain class of working journalists as per section 3 of Working Journalists Act 1955.


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M EASURES FOR REVE TIO OF CO FLICTS A D DIS UTES1 2

T he Act not only provides machinery for investigation and settlement of disputes, but also some measures for the containment and prevention of conflicts and disputes. Important preventive measures provided underthe Act are:

y

1. Setting up of Works Committees in establishments employing 100 ormore persons, with equal number of representatives of workers andmanagement for endeavouring to compose any differences of opinion inmatters of common interest, and thereby promote measure for securingand preserving amity and cordial relations between the employer and workmen.

The representatives of workmen will not be less than the representatives of employers and such representatives of workmen will be from among the workmen engaged in the establishment and in consultation withregistered trade unions.

T he decision of the works committee carries weight but is not conclusiveand binding; its duties is to smooth away friction then to alter

conditions of services, etc. (Section 3).


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y 2. Prohibition of changes in the conditions of service in respectof matters laid down in the Fourth Schedule of the Act (Appendix-1) (a) without giving notice to the workmen affected by such changes; and (b) within 21 days of giving such notice.

y No such prior notice is required in case of (a) Changes affected as a result of any award or settlement; (b) Employees governed by Government. rules andregulations (see 9A).

y 3. Prohibition of strikes and lock outs in a public utility service (a) withoutgiving notice to other party within six weeks before striking or locking out,(b) within 14 days of giving such notice, (c) before the expiry , of the date of strike or lock-out specified in the notice and during the pendency of any conciliation proceedings before a conciliation office and seven days after theconclusion of such proceedings.

In non-public utility services strikes and lock out are prohibited during thependency of conciliation proceedings before the Board of Conciliation andseven days after the 'conclusion of such proceedings, during the pendency of proceedings before an arbitrator, labour court, and Industrial T ribunal andNational T ribunal, during the operation of an award and settlement inrespect of matters covered by the settlement or award. (Sections 22 and 23).


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y 4. Prohibition of Unfair Labour Practices: Sec. 25 T and 25 U prohibit employers,employees and unions from committing unfair labour practices mentioned in theSchedule V of the Act ( Appendix-In. Commission of such an offence is punishable withimprisonment upto six months and fine upto Rs. 1000, or both. (Ch. V -C)

y 5. Requiring employers to obtain prior permission of the authorities concerned before whom disputes are pending for conciliation, arbitration and adjudication, for changing working and employment conditions, or for dismissal or discharging employees and theirunion leaders. (Section 33).

y 6. Regulation , of lay-off and retrenchment and closure of establishment: Sec. 25 and its'

sub-sections require employers toy (a) pay lay-off compensation to employees (in establishments employing 50 or more ) forthe period that they are laid-off, at the rat of 50% of the salary or wages which they wouldhave paid otherwise,

y (b) give one month notice, and three months notice in case of establishments employing100or more persons or pay in lieu of notice, and also pay compensation at the rate of 15 days wages for every completed year of service for retrenchment and closingestablishments

y

(c),-Retrench employees on the basis of first come last go, andy (d) obtain permission from the Government for retrenchment and laying off employeesand closing, of establishments employing 100or more persons. (Ch. VA, VB)


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M ACHI ERIES FOR I VESTIGATIO A D SETTLEM E T OF DIS UTES

y For Industrial; disputes which are not prevented orsettled by, collective bargaining or Works Committeesor by Bipartite negotiations, the following authoritiesare provided under the. Industrial Disputes Act forresolving the same.

y Conciliation Officer and Board of Conciliation

y Voluntary Arbitration

y Adjudication by Labour Court, Industrial Tribunal , andNational Tribunal


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CO CILIATIOy Conciliation in industrial disputes is a process by which

representatives of management and employees and their unionsare brought together before a third person or a body of persons with a view to induce or persuade them to arrive at someagreement to their satisfaction and in the larger interest of industry and community as a whole .

y Both the Central and State Governments are -empowered under theIndustrial Disputes Act, 1947 to appoint such number of conciliationofficers as may be considered necessary for specified areas or forspecified industries in specified areas either permanently or for limitedperiods

y

. His role is only advisory and mediatory. He has no authority tomake a final decision or to pass formal order directing the parties to act in a particular manner.


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P ro ce ss o f Con cilia ti on y Where any industrial dispute exists or is apprehended, and is

brought to the notice of conciliation officer by the partiesconcerned, or is referred to him by the government, or hereceives a notice of strike or lock-out, he is to hold conciliationproceedings in the prescribed manner (sec 12)

y Conciliation proceedings are obligatory in case of public utility services, and in such cases conciliation proceedings have to bestarted immediately after receiving notice of strike or lock-out orreference from the Government. In such cases conciliationproceedings are deemed to have commenced from the time thenotice of strike is received by the conciliation officer.

y In other cases conciliation may be initiated at the discretion of the Government. (ie reference to boards have to be done by thegovt. )


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y The conciliation officer' may send formal intimation to the parties concerneddeclaring his intention to commence conciliation proceedings with effect fromthe date he may specify.

y He may hold meetings with the parties to the dispute either jointly orseparately. A joint meeting saves time and also affords parties an opportunity tomeet each other and put forward their respective view points and commentsabout the dispute.

y Conciliation proceedings are to be conducted expeditiously in a mannerconsidered fit by the conciliation officer for the discharge of his duties imposedon him by the Act, If a settlement is arrived at in the course of the conciliationproceedings, memorandum of settlement is worked out and signed by theparties concerned, and it becomes then binding on all parties concerned for aperiod agreed upon.

y The conciliation officer is to send a report to the Government ( within 14days of the commencement of conciliation ) giving full facts along with a copy of thesettlement.

y If no agreement is arrived at, the-conciliation- officer is required to submit afull report to the Government explaining the causes -of :failure.'


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y After considering the failure report the Government may refer the dispute to the Board of Conciliation, arbitration,or for adjudication to Labour Court or Industrial Tribunal.

y If the Government does not make such a reference, it shallrecord and communicate to the. parties concerned thereasons thereof

y The conciliation officer is not a judicial officer. Afterreporting that no settlement could be arrived at, he cannotbe debarred from, making fresh effort to bring about asettlement. But he cannot take final decision by himself.


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P ow e rs o f Con cilia ti on Offic e ry Under the Act, conciliation is not a judicial activity. It is only administrative,

since it is executed by the Government agency. Although conciliation officer isnot a judicial officer, but to enable him to discharge his duties cast upon himunder the Act, he has been empowered to enter the premises occupied by anestablishment to which the dispute relates after giving reasonable notice forinspecting same, or any of its machinery, appliances or articles. He can alsointerrogate any person there in' respect of any thing situated therein or any matter relevant to the subject matter of conciliation. He can also call for any document which he has ground for considering relevant in the dispute, or tobe., necessary for the purposes of verifying the implementation of any award orcarrying out any other duty imposed on him under the Act. He is alsoempowered to enforce the attendance of any person for the purpose of

examination of such persons. For all these purposes the conciliation officershall have the same power as are vested in a Civil Court under the Code of CivilProcedure. He is also deemed to be public servant within the meaning of Sec.21of the Indian Penal Code:


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Se ttl eme n ts I n an d Ou side

Con cilia ti on y A settlement arrived at in proceedings under the Act is binding

on all the parties to the dispute. It is also binding on otherparties if they are summoned to appear in conciliation

proceedings as parties to the dispute: In case' of employer such asettlement is also binding on his heirs, successors, assigns inrespect of establishment to which these disput relate. In regardto employees, it is binding on all persons who were employed inestablishment or part of the establishment to which the dispute'relates on the date of dispute, and to all persons whosubsequently become employed in that establishment.

y A settlement arrived at by agreement between the managementand workers or their unions outside conciliation. proceedings isbinding only on the parties to the agreement. (Section 18).


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Boa rd o f Con cilia ti on y This is a higher forum which is constituted for a specific dispute.

It is not a permanent institution like the Conciliation Officer,The Government may, as occasion arises, constitute a Board of Conciliation for settlement of an industrial dispute with anindependent chairman and equal representatives of the partiesconcerned as its members

y The chairman who is appointed by the Government, is to be aperson unconnected with the dispute or with any industry directly affected by such dispute. Other members are to beappointed on the recommendations of the parties concerned;and if any party fails to make recommendation, the Governmentshall appoint such persons as it thinks fit to represent that party.The Board cannot admit a dispute in conciliation on itsown.-It can act only when reference is made to it by theGovernment. (Section 5).


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y As soon as a dispute is referred to a Board, it has toendeavour to bring about a settlement of the same..For this purpose, it has to investigate the dispute andall matters affecting the merits and right settlementthereof, for the purpose of inducing the parties tocome to a fair and amicable settlement. Procedurefollowed by the Board in this regard is almost the sameas adopted by the conciliation officers. The Board is,however, required to submit its report within twomonths of the date on which the dispute wasreferred to it, or within such short period as theGovernment may fix in this behalf


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y The proceedings before the Board are to be held in public, but the Board may at any stagedirect that any witness shall be examined or proceedings shall be held in camera.

y If a settlement is arrived at, a report with a copy of the settlement is submitted, to theGovernment.

y If the Board fails to bring about settlement, a report is submitted to the Governmentstating the facts and circumstances, the steps taken, reasons for failure along with its

findings.y After considering its findings the Government may refer the dispute for voluntary

arbitration if both the parties to the dispute agree for the same, or for 'Adjudication toLabour Court or Industrial Tribunal or National Tribunal.

y The period of submission of report may be extended by the Government beyond twomonths as agreed upon by the parties in writing. A member of the Board may record any minute of dissent from the report, or from any recommendation made therein. With theminute of dissent the report shall be published by, the Government within thirty days from the receipt

y A Board of Conciliation can only try to bring about a settlement. It has no power toimpose a settlement on the parties to the dispute. The Board has the power of a CivilCourt for, (i) enforcing the attendance of any person and examining on oath; (ii) compelling the production of documents and material objects; (iii) issuing commissionsfor the examination of witnesses. The enquiry or investigation by the Board is regarded as

judicial proceedings.


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y The Boards of conciliation are rarely appointed by theGovernment these days because of a long precedence of failure.

y The conciliation officer is found to be more acceptable. This ismore so when disputes relate to a whole industry, or importantissues, and a senior officer of the Industrial Relations Machinery,i.e. a senior officer of the Directorate of Labour, isentrusted with the work of conciliation . The Chief LabourCommissioner (Central ) or Labour Commissioner of the StateGovernment generally intervene themselves in conciliation whenimportant issues form the subject matters of the dispute.

y C ourt of Inquiry may be constituted for inquiring about matterappearing to be connected with or relevant to an I.D. The courtmay consist of one or more independent persons. It has tosubmit its report within six months on the matter referred toUnits. (Sec. 6) .


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VOLU TARY ARBITRATIOy When Conciliation Officer or Board of Conciliation fail to

resolve conflict/dispute, parties can be advised to agree to voluntary arbitration for settling their dispute. egPanchayati system

y This was advocated by Mahatma Gandhi and encouraged

by the governmenty In Code of discipliney The Government has set up a National Arbitration Board

for making the measure popular in all the states, and allefforts are being made to sell this idea to management and

employees and their unions. (1962)y In 1956 the Government decided to place voluntary

arbitration as one of the measures for settlement of adispute through third party intervention under the law.Sec. 10 A was added to the Industrial Disputes Act, and it

was enforced from 10th March, 1957 .


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Re f e re n ce o f Dis u te s f o r

Arb itr a tion y Where a dispute exists or is apprehended, it can be referred for

arbitration if the parties to the dispute agree to do so by submitting a written agreement to that effect, mentioning theperson acceptable to them as arbitrator and also the issues to. bedecided in arbitration - proceedings, to the Government and theConciliation Officer concerned before it is referred foradjudication to Labour Court or Tribunal. The Agreement mustbe signed by both the parties. Both under Sec. 10 A and 10(2) reference is obligatory.

y Where an agreement provides for even number of arbitrators, it will provide for the appointment of another person as an Umpire who shall decide upon the reference if the arbitrators are dividedin their opinion

y The award of the Umpire shall be deemed to be thearbitration award for the purposes of the Act.


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y The appropriate Government shall within one month from the date of thereceipt of the copy of the arbitration agreement publish the same in theOfficial Gazette if the Government is satisfied that the parties who have signedthe agreement for arbitration, represent majority of each party; otherwise itcan reject the request for arbitration.

y Where any such notification has been issued, the employer and workmen whoare not parties to the arbitration agreement, but are concerned in the dispute,shall be given an opportunity to present their case before the arbitrator or

arbitrators.y The arbitrator shall investigate the dispute and submit to the Government the Arbitration Award signed by him.

y Where an industrial dispute has been referred for arbitration and notificationhas been issued, the Government may by order prohibit the continuance of any strike or lock-out in connection with such dispute, which may be in existenceon the date of reference.

y

The arbitration award which is submitted to the Government and becomes enforceable, is binding on all parties to the agreement and all other parties summoned to appear in the proceedings as parties to'dispute. Such an award is also binding on all, employees at the time of award, or to be employed subsequently even if they are not party to theinitial agreement. If the arbitration agreement is not notified in theOfficial Gazette under Sec. 10-A, it is applicable only to the parties whohave agreed to refer the dispute for arbitration.


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Evaluation of arbitrationy During the last decade not even 1%of the disputes reported

were referred for arbitration. The National, Commission onLabour examined the working of arbitration as a method of

settling disputes, and found that it was yet to be acceptedby the parties, particularly by the 'employers, unreservedly.The main hurdles noticed yet are:

y Choice of suitable arbitrator acceptable to both parties.

y Payment of-arbitration-fees-Unions can seldom afford toshare such costs equally with management.


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ADJUDICATIOy Unlike conciliation and arbitration, adjudication is compulsory method

of resolving conflict.L abour Court can be constituted by central or state govt.y It consists of one person only, who is also called the Presiding Officer,

and who is or has been a judge of a High Court, or he has been a district judge or an additional district judge for a period not less than three years, or has held any judicial office in India for not less than seven

years. Industrial disputes relating to any matter specified in the SecondSchedule of the Act ( Appendix-III ) may be referred for adjudication tothe Labour Court. (Section 7).

Industrial T ribunal -can be constituted by central or state govty This is also one-man body (Presiding Officer ). The Third Schedule of

the Act mentions matters of industrial disputes which can be referredto it for adjudication ( Appendix-IV ). This Schedule shows thatIndustrial Tribunal has wider jurisdiction than the Labour Court. TheGovernment concerned may appoint two assessors to advise thePresiding Officer in the proceedings. (Section 7 A ).


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y National T ribunaly This is the third adjudicatory body to be appointed by the

Central Government under the Act . It can deal with any dispute mentioned in Schedule II and III of the Act or any matter

which is not specified therein. This also consists of one person tobe appointed by the Central Government, and he must havebeen a Judge of a High Court. He may also be assisted by twoassessors appointed by the Government to advise him inadjudicating disputes.

y The presiding officers of the above three adjudicatory bodiesmust be independent persons and should not have attained theage of 65 years. Again, these three bodies are not hierarchical. Itis the prerogative of the Government to refer a dispute to thesebodies.

y They are under the control of the labour department of therespective State Government and the Central Government. Thecontending parties cannot refer any dispute for adjudicationthemselves, and the award of these bodies are binding on them.(Section 7B).

n o u o


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e e re n ce o s u e o rAdj u d ica ti on (Se cti on 0)

y If a dispute is not settled by direct negotiation, orconciliation, if the parties do not agree to get it settled by

voluntary arbitration, the Government at its discretion may refer it to Labour Court, Industrial Tribunal or NationalTribunal, depending upon whether the matter of thedispute appears in the Second of Third Schedule of the Act.

y

However, if the parties to the dispute jointly or separately apply for a reference to Labour Court or Tribunal, theGovernment is obliged to make a reference accordingly if itis satisfied that the persons applying represent the majority of each party. Disputes which are considered vexatious orfrivolous, are not referred to adjudication. The Governmenthas also the power to refer disputes which have not takenplace, but are only apprehended. After referring the disputeto adjudication the Government can prohibit thecontinuance of any strike or lock-out in connection withsuch dispute which may be in existence on the date of itsreference.


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y An order referring a dispute to Labour Court or IndustrialTribunal or National Tribunal shall specify the period within

which they shall submit their award on such dispute to theGovernment concerned. In case of individual disputes such aperiod shall not exceed three months. The period can, however,be extended if the parties concerned apply for such extension, orthe Labour Court or Industrial Tribunal may consider expedientto do so for the reason to be recorded.

y The proceedings before these authorities shall not lapse on theIndustrial Relations ground that the proceedings have not beencompleted' within the specified time or by reason of the death of any of the parties to dispute being a workman. In computing any period specified in the order of reference, the period if any, for

which proceedings had been stayed by the injunction of the CivilCourt, shall be excluded.

y When the Central Government is the appropriate Government inrelation to any industrial dispute, it can refer the dispute foradjudication to Labour Court or Industrial Tribunal appointedby the State Government instead of setting up its own LabourCourt or Tribunal for that purpose. 18


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AW ARDS OF LABOUR COURTS

A D I DUSTRIALTRIBU ALSy Awards of Labour Courts and Industrial Tribunals are binding on the

parties concerned, on their heirs, successors and assignee of employersand on all persons employed subsequently.

y On receipt of award, it is to be published by the appropriate

Government within thirty days of the receipt. They become enforceableon the expiry of thirty days from the date of their publication in theOfficial Gazette

y The normal period of operation of any award, as fixed under the Act, isone year. The Government has, however, the power to fix such period asit thinks fit. The Government can also extend the operation of theaward up to one year at a time, but the total period of operation of any award cannot exceed three years from the date when it came into effect.

y Even if it is not extended, the award remains binding on the parties tillit is terminated by two months notice given by majority of one of theparties bound by the award to the other party, intimating its intentionto terminate the award.


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y The appropriate Government may not accept or give effect to anaward in relation to a dispute to which it is a party, or if theaward is given by the National Tribunal, and if it is considered

inexpedient on grounds of national economy or social justice .y In such a situation the Government may by notification in the

Official Gazette declare that the award does not becomeenforceable on the expiry of the said period of thirty days.

Within thirty days of its publication the Government may make an

order, rejecting or modifying the award, and shall on the firstavailable opportunity lay the award together with a copy of theorder before the State Assembly or the Parliament , as the casemay be, where the award may be modified or rejected . Such anaward shall become enforceable on the expiry of 15days from thedate it is so laid. Where no order is made in pursuance of declaration, award becomes enforceable within 90 days of itspublication. The award comes into operation from the datementioned in the order, and where no date is mentioned, itoperates from the date it becomes enforceable. (Sections 17, 17 A,19).


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y These awards are amenable to constitutional remediesprovided by Articles 32,226 and 227 of theConstitution on grounds of defects of jurisdiction,

violation of the principles of natural justice or anyerror of law .y Proceedings can be initiated against these awards both

in the High C ourt and the Supreme C ourt .y

But if an employer prefers any proceedingsagainst an award which directs the reinstatementof any workman, in High C ourt or the SupremeC ourt, he is liable to pay to such workman duringthe pendency of such proceedings full wages lastdrawn by him, inclusive of any maintenanceallowance admissible to him under any rule if the workman had not been employed in anyestablishment during such period. (Section 17B).

P OW ERS OF LABOUR COURT A D I DUSTRIAL


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P OW ERS OF LABOUR COURT A D I DUSTRIALTRIBU ALS

y The proceedinds are judicial proceedings with powersof a civil court

y

Section 11 A was inserted in the Act in 1971. It wassequel to IISCO case (S.C. 1958) and I LO'srecommendation that worker aggrieved by histermination should be entitled for appeal against suchtermination to a neutral body such as arbitrator, acourt, and arbitration committee, or a similar body.


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M ACHI ERY

y Initially trade unions affiliated to all political parties were enthusiastic ingetting their disputes settled by conciliation and adjudication asprovided under the Industrial Disputes Act, 1947- but these methods

were very time consumingy A few employers also started questioning the credibility of the presiding

officers of the Labour Courts and Industrial Tribunals, who are generally

retired persons engaged on yearly contract basis.y Record shows that the act is far from successful in resolving conflicteffectively. This may be due to red-tapism and bureaucractic delays andcomplicated procedure which are inherent in the Governmentorganisation. Such delays have encouraged militancy or violence inmanagement and union relations.

y The Industrial Disputes Act as amended recently ( Act 46 of 1982),provides time limits for the disposal of disputes by Labour Courts andTribunals, but these time limits are observed rarely. The amended Actalso provides for setting up a machinery - within the establishment forprompt handling of grievances, but this amendment has yet to be given

effect to.


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y Over thirty years back, National Commission onLabour recommended setting up of a moreindependent machinery in the form of IndustrialRelations Commissions, and this recommendation isstill under the consideration of the Government.

o ce o c ange n emp oymen


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o ce o c ange n emp oymen conditionsNo change in service conditions in respect of matters in

the 4 th schedule ( s.9 A )1) Without giving notice2) Within 21days of giving such notice

No notice in case of 1) Change due to award or settlement under this act2) Employees governed by govt. rules and regulationsSec.9B gives the govt. power to exempt

pen ency o procee ngs


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pen ency o procee ngs s.33 ,33A)During pendency of any proceedings under this act1) Service conditions cant be altered to the prejudice of

the workman concerned2) Cant dismiss or punish workman without permission

from the authority in writing ( and in this case 1 month s wages have to be given before application forpermission

Protected workmen are also given the above protection

Protected workman is an office bearer of aregistered TU connected with the establishmentand recognised as such under the ID act rules( cant be more than 1%, min 5 max 100)


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y Workers aggrieved due to non compliance of above cancomplain in writing directly to the authority

concerned before whom dispute is pendingy The authority will treat this complaint as an ID anddispose it off within 3 months ( period can be altered if parties want or authority thinks it fit )

y

The application from the employer , for changing theconditions of service or dismissal should also be dealt with in the same manner


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Stri kes and loc koutsy In a p.u.s strikes and lockouts are prohibited (sec.22)if

declared in breach of contracty A ) Without giving notice in the prescribed manner to

the other party within 6 weeks befoe striking orlockout

y

B) within 14days of giving such noticey C) before the expiry of the date of strike given in the

noticey D) during the pendency of any conciliation

proceedings before a CO and 7 days aftery E) the party which receives a notice as above has to

send a report to the appropriate govt. within 5 days

enera pro on o s r es an


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enera pro on o s r es an lockouts( s23)

y

Strikes and lockouts are prohibited in any establishment if called in breach of contract andy A ) during the pendency of conciliation before a board

and 7 days aftery B) During the pendency of proceedings before

arbitrator, or pending adjudication and 2 months aftery C) During the period in which a settlement or award is

in operation in respect of any matter covered in thesettlement or award

y No person is to knowingly finance any illegal strike orlockout

y Any lockout or strike declared in consequence of anillegal strike or lockout cannot be called illegal


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Illegal stri kes and lockoutsy Declared in contravention of section 22(pus ) and

23(all) are illegaly It is continued in contravention of order of govt.

prohibiting the same ( s10)y It is in breach of contract


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Justified and un justified stri kes y Justified - for good reason, carried out in orderly and peaceful

mannery Unjustified-a ) unjustified demand

b) employer was not given reasonable timeto discuss the issue

c) objectionable behaviour leading to violence

In Crompton Greaves vs the workmen SC (1978) for workers to beentitled to wages for the period of strike the strike should belegal and justified

In Gujrat steel tube case SC (1980)- SC rejected the theory of community guilt and collective punishment and ruled that no

worker will be dismissed saved on the proof of his individualdelinquency In Bharat Union Palicha vs State of kerala the full bench of Keralahigh court and SC held that bandh was illegal andunconstitutional


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Layoff y All industrial establishments (factories, plantations and

mines included )y which are not seasonal or do not work intermittantly y Employ 50( 50 100) or more workmenHave to pay layoff compensation @ 50% of Basic Wages+DA The worker s ( who is laid off ) name should be borne on the muster roll

and should not be casual or badli workery Should have completed 1year of continuous service, and should have

worked 190days (underground ) and 240 days in the preceding 12 months ( the days on which the worker has been laid off underagreement or standing order, the days on which he has been on leave

with wages,or due to employment injury or on maternity leave incase of women workers not exceeding 12weeks are to be consideredas working days.

y Compensation is paid only for working days and not weekly holidaysy Compensation is paid only for 45 days in 12months (but should be

an agreement to that effect ).In such cases the workman can belawfully retrenched after 45 days and layoff compensation can besetoff against retrenchment compensation


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or es a s men s emp oy ng


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or es a s men s emp oy ng or more wor kmen

No workman can be laid off without prior permission of

the appropriate govt. ( within 30 days of commencment anda copy of the same is to be given to the workman ) unlessthe layoff is due to

y Natural calamity y Shortage of powery Fire in case of minesy Or excessive accumulation of inflammable gas in mines ( in these

cases permission to continue is to be taken within within 30 daysof commencement )

The permission is to be granted by the authority or the govt. afterhearing both parties and the persons concerned and consideringall relevant mattersIf no communication is received from the govt. within 60 days of application, permission is deemed to have been granted.The govt. can review its decision or send the matter foradjudication ,and adjudication award should be given within 30 days.The decisions are final and binding and hold for a period of 1

year.


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y The layoff will be illegal if not done with the requiredpermission or when permission is refused

y The govt. may waive the requirement for priorpermission and payment of layoff compensation inspecial cases

y

In establishments employing more than 100 workmen retrenchment after45 days of layoff isnot allowed (sec 25 M)


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Retrenchment Compensationy No worker who has completed 1year of continuous service,

and should have worked 190days (underground ) and 240 days in the preceding 12months ( the days on which the

worker has been laid off under agreement or standingorder, the days on which he has been on leave with

wages,or due to employment injury or on maternity leave incase of women workers not exceeding 12weeks are to beconsidered as working days ) shall be retrenched unless

y He has been given 1month s notice ( estb.s employing 50 -100workmen ) or 3 months notice with prior permission ( more than 100) or has been paid 1or 3 months wages in lieuof notice respectively.

y Has been paid retrenchment compensation= 15daysaverage wages for every continuous year of service or partthereof in excess of 6 months

y All provisions regarding seeking permission ( more than

100workmen ) and the process is the same as in layoff


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P rocedure for retrenchmenty Principle of last come first goy If not reason has to be clearly recorded in writingy If re- employment has to be done retrenched workers

have to be given preference-have to be informed by

registered post 1month in advance and notice shouldbe displayed at conspicuous places in theestablishment 10days prior to the recruitment

y Compensation in case of transfer of undertakingsy

Closure s 25 FFF FFA y Reopeningy Penalities


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Conclusion and proposed

amendmentsy It is a restrictive, beneficial and protective actProposed amendments:1) Renaming it as IR Act

2) Introducing and defining the term go slow and redefiningPUSs3) Covering changes in employment conditions under individual

disputes and their direct reference to LC4) Replacement of I. Tribunal and N. Tribunal by IR commission

for adjudication and hearing appeals5) Legality of strikes this matter to go directly LC and LC to workunder the supervision of IR Commission6) Increasing the employment limit from 100 to 300 for an

establishment for obtaining prior approval for laying off,retrenchment and closing


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y 7) Strikes to be illegal if not supported by of members of the union and only after bargaining hasfailed and parties do not agree for VA

y 8) setting up bargaining councils and bargainingagents and defining their functions

y 9)Employees to declare lockout without prior notice if violence or damage to property

y 10)Penalties to be enhanced

ID ACT 1947. Complete

Documents

Transcript of ID ACT 1947. Complete