BY,KETAKI BHIRDIKARBHAVNA DASWANI

NEHA VYASPRIYANKA BAPAT

INDUSTRIAL DISPUTES ACT, 1947

BACKGROUND OF THE ACT

Came into existence in April 1947. Enacted to make provisions for investigation

and settlement of industrial disputes and for providing certain safeguards to the workers.  

The objective of the Industrial Disputes Act is to secure industrial peace and harmony by providing machinery and procedure for the investigation and settlement of industrial disputes by negotiations.

To prevent disputes between employers and employees so that production might not be adversely affected and the larger interest of the pubic might not suffer

The Act also lays downThe provision for payment of compensation to

the Workman on account of closure or lay off or retrenchment.

The procedure for prior permission of appropriate Government for laying off or retrenching the workers or closing down industrial establishments

Unfair labour practices on part of an employer or a trade union or workers.

Intends to ensure social justice to both employer and employees.

APPLICABILITY

Extends to the whole of India.Applies to every industrial establishment

irrespective of the workmen employed therein.Every person employed in an establishment for

hire or reward (including contract labour, apprentice & part time employees) is covered by this act.

APPLICABILITY

This act does not apply to:1) Person employed in managerial or

administrative capacity.2) Persons employed in a supervisory capacity &

drawing wages exceeding more than Rs. 1600 p.m.

3) Persons subject to Army Act, Air Force Act, Navy Act or those employed in the police service or as an officer or employee of a prison.

APPLICABILITY

A person to be termed as a “workman “ , there must exist a master & servant relationship. This is a prima facie evidence of being a workman.

INDUSTRY

"industry" means any business, trade, undertaking, manufacture or calling of employers and includes any calling, service, employment, handicraft, or industrial occupation or a vocation of workmen.

"industry" means any systematic activity carried on by co-operation between an employer and his workmen for the production, supply or distribution of goods or services with a view to satisfy human wants or wishes, whether or not, -

(i) any capital has been invested for the purpose of carrying on such activity; or

(ii) such activity is carried on with a motive to make any gain or profit, and includes –

(a) any activity of the Dock Labour Board(b) any activity relating to the promotion of sales or business or

both carried on by an establishment,

INDUSTRY

Industry does not include (1) any agricultural operation except where such

agricultural operation is carried on in an integrated manner with any other activity (being any such activity as is referred to in the foregoing provisions of this clause) and such other activity is the predomi nant one.

(2) hospitals or dispensaries; or(3) educational, scientific, research or training institutions;

or(4) institutions owned or managed by organisations wholly

or substantially engaged in any charitable, social or philanthropic service ; or

(5) khadi or village industries; or

INDUSTRY

(6) any activity of the Government relatable to the sovereign functions of the Government including all the activities carried on by the departments of the Central Government dealing with defence research, atomic energy and space; or

(7) any domestic service; or(8) any activity, being a profession practised by an individual

or body of individuals, if the number of persons employed by the individuals or body of individuals in relation to such professional is less than ten ; or

(9) any activity, being an activity carried on by a co-operative society or a club or any other like body of individuals, if the number of persons employed by the co-operative society, club or other like body of individuals in relation to such activity is less than ten

INDUTRIAL DISPUTE

An ‘industrial dispute’ means,1) Any dispute or difference between employers

& employees or workmen,2) Any dispute or difference between workmen

& workmen,Which is connected with the employment or non-

employment.

WHO CAN RAISE A DISPUTE?

A dispute is said to have risen when an demand made by the workmen is rejected by the management & vice versa , and the demand is relating to employment.

An ‘industrial dispute’ is a collective dispute supported by either a trade union or a substantial number of fellow workers.

However, certain individual disputes relating to dismissal, discharge, retrenchment or termination of services of a workman are also covered by the Act.

NOTICE OF CHANGE IN SERVICE CONDITIONS

The employer cannot make any changes in the service conditions (i.e. amt of wages and allowance, contribution to PF, hrs of work, rest intervals, leaves, timings of shifts etc) without giving atleast 21 days notice.

However if the change is due to any changes in the government rules & regulations, the change can be made without the notice too.

DISPUTE REDRESSAL MACHINARY

National Tribunial

Labour Court

Court of Inquiry

Conciliation Committee

Greivance Settlement Authority

Works Committe

CONSTITUTING WORKS COMMITTEE

Any industrial establishment having more than 100 workmen should have a Works Committee which has equal number of representation of labour and management.

The main function of the works committee is to establish cordial relations between workmen and employers and resolve differences of opinion in matters of common interest through negotiation.

GRIEVANCE SETTLEMENT AUTHORITY

The employer has to set up a grievance settlement cell wherein 50 or more workmen are employed .

Any workman or trade union can refer a dispute to the Grievance Settlement Authority.

No dispute shall be referred to the Conciliation Board, Labour Court, unless it is referred to the Grievance Settlement Authority.

CONCILIATION OFFICER

The appropriate Government may, appoint A person, to be conciliation officer.

He is charged with the duty of mediating in and promoting the settlement of industrial disputes.

A conciliation officer may be appointed for a specified area or for specified industries in a specified area or for one or more specified industries and either permanently or for a limited period.

BOARD OF CONCILIATION

The Government can constitute a Board of Conciliation for promoting, the settlement of an industrial dispute.

A Board shall consist of a Chairman and two or four other members, as the Government thinks fit.

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.

COURTS OF INQUIRY

The Government can constitute a Court of Inquiry for inquiring into an matter appearing to be connected with or relevant to an industrial dispute.

A Court may consist of one independent person or more than one person.

When the Court consists of two or more members, one of them shall be appointed as the chairman.

LABOUR COURTS

The Government can, constitute one or more Labour Courts for the adjudication of industrial disputes.

A Labour Court shall consist of one person only to be appointed by the Government.

A Presiding Officer of a Labour Court has the have the following qualifications:

1) he is, or has been, a Judge of a High Court; or2) he has, for a period of not less than three years,

been a District Judge or an Additional District Judge; or

3) he has held any judicial office in India for not less than seven years ; or

4) he has been the Presiding Officer of a Labour Court constituted under any Provincial Act or State Act for not less than five years.

TRIBUNALS

The Government can constitute one or more Industrial Tribunals for the adjudication of industrial disputes.

A Tribunal shall consist of one person only to be appointed by the appropriate Government.

A person to be appointed as the presiding officer of a Tribunal has to have the following qualifications:

1) he is, or has been, a Judge of a High Court;2) he has, for a period of not less than three years,

been a District Judge or an Additional District Judge.

The Government can also appoint two persons as assessors to advise the Tribunal in the proceeding before it.

NATIONAL TRIBUNALS

The Central Government can constitute one or more National Industrial Tribunals for the adjudication of industrial disputes.

Theses disputes in the opinion of the Central Government, involve :

1) questions of national importance2) are of such a nature that industrial

establishments situated in more than one State are likely to be interested in.

A National Tribunal shall consist of one-person only to be appointed by the Central Government.

NATIONAL TRIBUNALS

A person to be qualified for appointment as the presiding officer of a National Tribunal has to be, or has been, a Judge of a High Court.

The Central Government can appoint two persons as assessors to advise the National Tribunal.

STRIKES & LOCK OUTS

STRIKES AND LOCK-OUTS

Strike means, suspension of work by a group of employees in any industry, acting in combination.

E.g :- Partial Stoppage of work, sitting in strike, pen-down strike.

Lockout is temporary shutting down or closing the place of business by the employer but not of business itself.

Strike and lock-out are the coercive measures resorted to by the employees and the employers to compelling the other party to accept their demands or conditions of service.

PROHIBITION TO STRIKES

No group of workman may strike in the following 5 situations:

1. Conciliation going on before a Board of Conciliation & 7 days thereafter.

2. Adjudication before a Labour Court or Tribunal & 2 mths. thereafter.

3. Appropriate government prohibits the continuance of any strike.

4. Arbitration before an Arbitrator & 2 mths. thereafter.5. A settlement or an award is in operation.

(Note: prohibition restricted to those matters only which are covered by the settlement or award.)

PROHIBITIONS ON STRIKES & LOCKOUTS IN PUBLIC UTILITY SERVICES

Strike notice must be given to the employer & Conciliation Officer.

Strike must not take place for 14 days after the notice has been given.

Strike must not take place after 6 weeks from the notice.

Strike must not take place before the day, if any, specified in the strike notice.

Strike must not take place during conciliation before a Conciliation Officer & 7 days after the conclusion of such proceedings.

ILLEGAL STRIKES OR LOCK-OUTS

Any strike or lockout in contravention to the restrictions laid down , shall be illegal.

If the strike is illegal, workmen shall be liable to lose wages & dismissal or discharge.

Illegal Lock outs, can however not lead to deduction of pay of the workmen.

WAGES FOR STRIKE PERIOD

Workmen are entitled to wages in case the strike is not illegal.

Exception is where, the strike is made but is justified by the circumstaces. E.g :- Workmen refusing to work in case of gas leak in the plant. Though illegal, workmen can’t be refused pay.

However, if the workmen use force or violence or sabotage during the strike, the workmen are not entitled to pay.

LAY-OFF

LAY-OFF

Lay – off means “ the failure, refusal or inability of an employer on account of shortage of coal & power or raw material or the accumulation of stocks or the breakdown of machinery or for any other reason to give employment to a workmen whose name is borne on the muster roll of his industrial establishment & who has not been retrenched.”

NOTICE OF LAY-OFF

Employer has to give notice of lay-off within 7 days of the withdrawal of employment.

Employer has to obtain the permission of the Government in case he employs 100 people, 60 days before the intended lay-off.

A copy of such permission should be given to workmen also.

LAY-OFF COMPENSATION

Employer employing atleast 50 workmen, but less than 100 workmen is required to pay compensation to the workmen being laid-off.

A workmen who is on the rolls of the company in continuous service for atleast 1 year before the lay-off are entitled to compensation.

RETRENCHMENT

RETRENCHMENT

Retrenchment means termination by the employer of the service of the workmen for any reason, but excludes:

1) Dismissal inflicted by way of disciplinary action,

2) VRS of the workmen,3) Retirement 4) Termination on non-renewal of contract of

employment5) Termination due to continued ill health.

CONDITIONS TO RETRENCHMENT

No workmen employed in continuous service for more than 1 yr. shall be retrenched by that employer until:

I. Has been given 3 mths notice in written, indicating the reasons for retrenchment.

II. Compensation shall be equivalent to 15 days average pay for every completed years of continuous service or any part thereof in excess of 6 months.

III. Notice shall be given to government & the permission of such government is obtained.

CONDITIONS TO RETRENCHMENT

I. Government after making inquiry may grant or refuse the permission to the employer within 3 months.

CLOSURE

CLOSURE

Closure means permanent closure of place of employment.

Closure is final & irreversible.The reasons for closure are beyond the

control of the employer.Employer intending to close, has to inform

the Government 60 days before the date of the intended closure.( employer employes more than 50 & less than 100 workers)

In case where the employer employs more than 100 workers, the permission has to be obtained from the Government 90 days prior to the intended closure.

NOTICE AND COMPENSATION

Workmen have to served a notice of 1 month of the intended closure

Workmen have to be paid compensation equal to 15 days average pay for every completed year of service.

Incase the establishment is closed due to resons beyond the control of the employer, compensation shall not exceed 3 months of pay.

ILLEGAL CLOSURE

Incase the closure is done when the Govermnet permission is not obtained, it constitutes illegal closure.

THANK YOU!!