IRLL - Industrial Dispute Act 1947

7/28/2019 IRLL - Industrial Dispute Act 1947

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The Second Schedule(Sec.7)

Matters within the jurisdiction of LabourCourts

1. The order passed by an employer under

the standing orders;

2. The application and interpretation ofstanding orders;

3. Discharge or dismissal of workmenincluding reinstatement or grant of relief toworkmen wrongfully dismissed;


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4. Withdrawal of any customary concession orprivilege;

5. Illegality or otherwise of a strike or lockout;

and6. All matters other than those specified in the

third schedule.

A Labour Court consists of one person only to

be appointed by appropriate Govt. (Sec. 7(2))


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Qualifications

(a) He is, or has been a judge of a High Court; or

(b) He has for a period of not less than threeyears been a District Judge or anAdditional District Judge; or

(c) Has held judicial office for not less than 7years; or

(d) Has been a presiding officer for not less

than 5 years.Presiding officer shall be deemed to be apublic servant.


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Duties

1. To adjudicate upon industrialdisputes relating to matters specifiedin the second schedule. (Sec. 7 (1))

2. To give award within the specifiedperiod submit the award to theappropriate Govt. (Sec.15)

. Award to be in written and signed andpublished within 30 days of itsreceipt by the appropriate Govt.


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Powers

1. Power to enter premises with priorreasonable notice enter the premises ofindustrial dispute (Sec11 (2)).

2. Powers of Civil Court Labour Court as thesame powers as that of Civil Court as perCode of Civil Procedure, 1908.

Enforcing attendance and examining him on

oath, compelling documents, examining ofwitnesses and other matters as prescribed.


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Prohibition of strike or lock-out

Where an industrial dispute has been referredto a Labour Court, the Govt. may orderprohibit the continuance of any strike or

lock-out in connection with such dispute.Jurisdiction where in an order referring to an

industrial dispute to a Labour Court theappropriate Govt. has specified the points

of dispute for adjudication, the LabourCourt shall confine its jurisdiction.


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Costs of the proceedings

The costs of, and incidental to any,proceeding before a Labour Courtshall be in the discretion of theLabour Court. The costs may, onapplication made to the appropriateGovt. by the person entitled, be

recovered by that Govt. in the samemanner as an arrear of land revenue(Sec. 11(7)).


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Labour Court deemed to be a Civil Court Every Labour Court shall bedeemed to be a Civil Court for thepurposes of Secs. 345, 346 and 348of the Code of Criminal Procedure,1973 (Sec.11(8)).


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2. Industrial Tribunal (Sec.7-A)

Appointment and constitution Theappropriate Govt. may, by notificationin the Official Gazette, constitute oneor more Industrial Tribunals or theadjudication of industrial disputesrelating to any matter, Second

Schedule or the Third Schedule.


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Third Schedule (Sec.7-A)

Matters within the jurisdiction of IndustrialTribunal

1. Wages, including the period and mode ofpayment; Compensatory and otherallowances; Hours of work and restintervals; Leave with wages and holidays;Bonus, profit sharing, provident fund andgratuity; Shift working; Classification bygrades; Rules of discipline;

Rationalisation; Retrenchment of workmenand closure of establishment; Any othermatter that may be prescribed.


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Qualifications

(a) Has been a judge of a High Court; or

(b) For a period of not less than 3 yearsDistrict Judge or Additional District judge.

The presiding officer of Tribunal shall deemedto be a public servant.

Govt. may appoint 2 persons as assessors toadvise the Tribunal.

Reference of Disputes Any matter specifiedin Second Schedule or Third Schedule.


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Prohibition of strike or lock-out Govt.by order prohibit the continuance ofstrike or lock-out in connection withsuch dispute.

Jurisdiction the Tribunal shall confineits jurisdiction to those points and

matters incidental thereto (Sec.10(4)).


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Duties

The Tribunal shall hold its proceedingsexpeditiously and, shall within a periodspecified in the order referring such

industrial dispute, submit its award to theappropriate Govt.

Award to be writing and signed and itspublication The award shall be signed by

its presiding officer. It shall within a periodof 30 days from the date of its receipt bepublished by the Govt.


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Powers

(1) Power to enter premises The presidingofficer for the purpose of inquiry into anexisting or apprehended industrial disputeafter giving reasonable notice, enteroccupied by any establishment to whichthe dispute relates (Sec. 11(2)).

(2) Powers of Civil Court Same powers asare vested in a Civil Court under the Code

of Civil Procedure, 1908, when trying asuit in respect of the following matters,namely :


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(a) Enforcing attendance of any person andexamining him on oath;

(b) Production of documents and material

objects;(c) Examination of witnesses; and

(d) Any such matter as may be prescribed.

Every inquiry or investigate by a Tribunal shalldeemed to be a judicial proceedings as perthe Indian Penal Code, 1860 (Sec.11 (3)).


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(3)Power to appoint assessors appoint oneor more persons having special knowledgeof the matter as assessors to advise it inthe proceedings before it ( sec. 11 (5)).

(4) Power to award costs the costs of , andincidental to, at the discretion of theTribunal.

Tribunal shall be deemed to be a Civil Courtfor the purposes of Secs.345, 346 and 348of the Code of Criminal Procedure, 1973(Sec.11 (8).


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Public Utility Service (Sec.2 (n))

Any railway service or any transport servicefor the transport of passengers or goods byair;

Service in, or in connection with working of,any major port or dock;

Any postal, telegraph or telephone service;

Any industry which supplies power, light or

water to the public;Public sanitation; any industry specified inFirst Schedule.


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The First Schedule(Sec.2 (n) (vi))

1. Transport (other than railways) forcarriage of passengers or goods by land orwater.

2. Banking 3. Cement 4. Coal 5. CottonTextiles 6. Foodstuffs 7. Iron and Steel

8. Defence establishments 9. Hospital anddispensaries 10. Fire Brigade Service

11. Indian Govt. Mints 12. India Security Press13. Copper Mining 14. Lead Mining 15.Zinc Mining 16. iron Ore Mining


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17. Service in any Oilfield 18. Service inuranium industry 19. pyrites miningindustry 20. Security Paper Mill,Hoshangabad 21. Service in Bank Note

Press, Dewas 22. Phosphorite mining23. Magnesite Mining 24. Currency Note Press

25. Manufacture or production of mineral oil(crude oil), motor and aviation spirit,diesel, kerosene, fuel oil, diverse

hydrocarbon oils and their blends includingsynthetic fuels, lubricating oils 27. Servicein the IAAI


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3. National Tribunal (Sec.7-B)

Appointment and constitution theCentral Govt. by notifying in theOfficial Gazette constitute one ormore National Industrial Tribunals forthe adjudication of industrial disputesinvolving national importance or are

of such a nature that industrialestablishments situated in more thanone State are likely to be interestedin or affected by, such disputes


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A National tribunal shall consists of oneperson only to be appointed byCentral Govt.

Qualifications has been a judge of aHigh Court.

If it thinks fit may appoint 2 persons as

assessors.

The presiding officer of a NationalTribunal shall deemed to be a public

servant


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Reference of Disputes

Central govt. may be of opinion that anyindustrial disputes exists or isapprehended and the dispute involvesany question of national importanceor industrial establishment situated inmore than one State.

Any matter specified in the SecondSchedule or the Third Schedule to aNational Tribunal.


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Jurisdiction of Labour Court andIndustrial Tribunal to cease on areference made to National Tribunal

Prohibition of strike or Lock-out Wherean industrial dispute has beenreferred to a National Tribunal under

Sec.10, the appropriate Govt. may byorder prohibit the continuance of anystrike or lock-out in connection withsuch dispute.


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Fifth Schedule (Sec. 2(ra))Unfair Labour Practices

On part of employers and trade unionsof employers

(a)Threatening workmen with dischargeor dismissal, if they join trade union;

(b)Threatening a lock-out or closure, ifa trade union is organised;

(c)Granting wage increase to workmenat crucial periods of trade unionorganisation


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(c) Granting wage increase to workmenat crucial periods of trade unionorganisation, with a view toundermining the efforts of the tradeunion at organisation;

2. To dominate, interfere with or

contribute support, financial orotherwise, to any trade union, that isto say;

(a) An employer taking an active


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(b) An employer showing partially orgranting favour to one of severaltrade unions attempting to organisehis workmen or to his members,where such a trade union is not arecognised trade union

3. To establish employer-sponsoredtrade unions of workmen.


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4. To encourage or discouragemembership in any trade union bydiscriminating against any workman,

(a)Discharging or punishing a workman,because he urged other workmen tojoin or organise a trade union;

(b)Changing seniority rating ofworkmen because of trade unionactivities;


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(c) Discharging or dismissing aworkmen for taking part in any strike;

(d) Refusing to promote workmen tohigher posts on account of their tradeunion activities;

(e) Discharging office-bearers or active

members of the trade union onaccount of their trade union activities.


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5. To discharge or dismiss workmen

(a)By way of victimisation;

(b)Not in good faith, but in thecontrollable exercise of theemployers rights;

(c)By falsely implicating a workman in acriminal case on false evidence or onconcocted evidence;

(d)For patently false reasons;


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6. To abolish the work of a regularnature being done by workmen, andto give such work to contractors as a

measure of breaking astrike.

7. To transfer a workman from oneplace to another, under the guise of

following management policy.8. To show favouritism or partially to

one set of workers regardless of

merit.


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9. To insist upon individual workmen,who are on a legal strike to sign agood conduct bond, as a pre-

condition to allowing them to resumework.

10. To recruit workmen during a strike

which is not a illegal strike.11. Failure to implement award,

settlement or agreement.


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12. To employ workmen as badlis,casuals or temporaries and tocontinue them as such for years with

the object of depriving them of thestatus and privilege of permanentworkmen.

13. Proposing or continuing a lock-outdeemed to be illegal under this Act.


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14. To indulge in acts of force orviolence.

15. To refuge to bargain collectively, ingood faith with the recognised tradeunions.


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II. On the part of workmen andtrade unions of workmen

1. To advise or actively support orinstigate any strike deemed to beillegal under this Act.

2. To coerce workmen in the exercise oftheir right to self-organisation or tojoin trade union or refrain from

joining any trade union,


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a) for a trade union or its members opicketing in such a manner that non-striking workmen are physically

debarred from entering the workplaces;

b) To indulge in acts of force or violence

or to hold out threats against non-striking workmen or againstmanagerial staff.


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3. For a recognised union to refuse tobargain collectively in good faith withthe employer.

4. To indulge in coercive activitiesagainst certification of a bargainingrepresentative.

5. To stage demonstrations at theresidences of the employers or themanagerial staff members.


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6. To incite or indulge in wilful damageto employers property connectedwith the industry.

7. To indulge in acts of force or violenceor to hold out threats of intimidationagainst any workman with a view to

prevent him from attending work.


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The following have been held to beunfair labour practices;

a) The termination of the service of adaily wage labourer on his passingmatriculation examination, where

terms and conditions of appointmentcontained no such stipulation. This isan unfair trade practice by way of

victimisation. (H D Singh v. RBI,(1954) 4 SCC 201)


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Retrenchment (Sec.2 (oo)) The termused in the Industrial Disputes Act.Mean the termination by the

employer of the service of a workmanfor any reason whatsoever, otherwisethan as punishment inflicted by way

of disciplinary action.Does not include VRS or retirement or

termination of service for non-renewal of contract or on ground ofcontinued ill-health.


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Strikes and Lock-outsSecs.22 and 23

Prohibition of Strikes and Lock-outs 22& 23

1. Strikes in a Public Utility Service(Sec.22 (1)) No person employed in apublic utility service shall go on strike

a) Without giving to the employer notice

of strike, before 6 weeks of striking orb) within 14 days of giving suchnotice or c) before the expiry of the

date of strike specified in any such


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2. Lock-out in a public utility service 22(1) 1. without giving them notice oflock-out, within 6 weeks before

locking-out or within 14 days ofgiving such notice or before theexpiry of the date of lock-out

specified in any such notice.Both notice for strike and lock-out is

valid for 6 weeks.


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Notice of lock-out or strike notnecessary in certain cases it is notnecessary when there is already in

existence a strike, or as the case maybe, lock-out in the public utilityservice. But the employer shall send

intimation of such lock-out or strikeon the day on which it is declared, tothe concerned authority (Sec. 22(3)).


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Intimation of notices of strike or lock-out to be given within 5 days Shallwithin 5 days thereof report to the

appropriate Govt. or to such authorityas that Govt. prescribe the number ofsuch notices received or given on that

day (Sec.22(6).


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3. Strike and Lock-out in anindustrial establishment Sec.23

No employee or employer shall go onstrike or shall declare a lock-out.

a) During the pendency of conciliationproceedings before a Board ofCoinciliation and 7 days after theconclusion of such proceedings;

b)During the pendency of proceedingsbefore a labour court, IndustrialTribunal or National Tribunal and 2

months after the conclusion of such


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Illegal strikes and lock-outsSec.24

It shall be illegal if, 1) it is commencedor declared in contravention of Sec.22or Sec.23 or it is continued in

contravention of an order made underSec. 10(3) or Sec. 10-A (4-A).

Prohibition of financial aid to illegal

strikes and lock-outs Sec.25 - Noperson shall knowingly expend orsuuply any omey in direct furtherenceof support of any illegal strike or lock-out.


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Penalties regarding strikes andlock- outs

1. Penalty for illegal strike Sec.26(1)illegal strike shall be punishablewith imprisonment for a term which

may extend to 1 month, or a fine ofRs.50 or both.

2. Penalty for illegal lock-out

Sec.26(2) shall be punishable withimprisonment for a term which mayextend to 6 months or a fin ofRs.1,000 or with boat.


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Penalty for instigation, Etc. Sec.27

6 months or a fine of Rs.1,000 or both.


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Lay-off and Retrenchment

Lay-off means the failure, refusal orinability of an employer to giveemployment to a workman (a) whose

name is borne on the muster-rolls ofhis industrial establishment, and (b)who has not been retrenched. The

failure, refusal or inability to giveemployment may be due to-


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1. Shortage of coal, power or rawmaterials, or

2. The accumulation of stocks, or

3. The breakdown of machinery, or

4. Natural calamity or for any otherconnected reasons.


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Essentials of lay-off

a) There must be failure or refusal orinability of the employer to continueemployees in his employment.

b) The employees laid off must be onthe muster-rolls of the establishmenton the day of lay-off.

c) Due to shortage of RM, accumulationof stocks, break down of machineryor natural calamity d) must not have

been retrenched


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Difference between lock-outand retrenchment

1) Lock-out is temporary; retrenchmentis permanent. Retrenchmentseverance of industrial relationship

between an employer and anemployee while lock-out keeps thisrelationship alive even during the

cessation of work. LC- suspension ofrelationship and Ret- severance inrelationship.


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Difference between lock-outand lay-off

1. Under lock-out the employer refusesto give employment because ofclosing of a place of employment or

suspension of work. Under lay-offemployer refuses to give employmentbecause of shortage of coal, power or

raw materials or the accumulation ofthe stocks or the breakdown ofmachinery or natural calamity or anyother reason.


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2. Lock-out is resorted to by theemployer to coerce or pressurise theworkmen to accept his demands; lay-

off is for trade reasons beyond thecontrol of the employer.

3. lock-out is due to industrial dispute

and continues during the period ofdispute; lay-off is not concerned witha dispute with the workmen.

-i h f k l id ff f


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right of workmen laid-off forcompensation (Sec.25-C)

The right of a workman to lay-offcompensation is designed to relievethe hardship caused by

unemployment due to no fault of theworkman. It is based on the groundsof humane public policy.

Th i i di


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The requisites regardingpayment of compensation

1. The workman must not be a badliworkman or a casual workman, if heis to be entitled to compensation.

2. His name must be borne on themuster rolls of the industrialestablishment.


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3. He must have completed not lessthan 1 year of continuous service.Where a workman is employed for 11

months before lay-off, he is notentitled to lay-off compensation.

4. If the above conditions are fulfilled,

he is paid compensation by theemployer for all days during which heis laid-off, except for weekly holidays.


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5. The rate of compensation shall beequal to 50% of the total of basicwages and dearness allowance that

would have been payable to him hadhe not been laid-off.


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6. If during any period of 12 months, aworkman is so laid-off for more than45 days, no such compensation shall

be payable to the workman duringany period of 12 months after theexpiry of the first 45 days if there is

an agreement to that effect betweenthe employer and the workman.


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Badli Worker

A badli workman means a workmanwho is employed in an industrialestablishment in the place of another

workman whose name is borne on themuster rolls of the establishment. Buthe has completed one year of

continuous service in theestablishment, he shall cease to be abadli workman for the purposes ofSec.25-C.

Duty of an employer to maintain


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y p ymuster rolls of workmen (Sec.25-D)

Sec.25-D enjoins upon the employer aduty to maintain a muster roll ofworkmen notwithstanding that they

have been laid-off. If a workman doesnot so present himself and sign themuster roll, he shall not be entitled to

claim lay-off compensation.

Workmen not entitled to


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compensation in certain cases(Sec.25-E)

No compensation is payable to a workmanwho has been laid-off in the following cases:

1. If he refuses to accept any alternativeemployment in the same establishmentfrom which he has been laid-off, or anyother establishment belonging to the same

employer. 8 kms., Same wages and notcalls for special skill.


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2. If he does not present himself forwork at the establishment at theappointed time during normal

working hours at least once a day.

3. If such laying-off is due to strike orslowing down of production on the

part of workmen in another part ofestablishment.

Retrenchment


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Conditions precedent toretrenchmentofworkmen(sec.25-F)

No workmen employed in any industrywho has been in continuous servicefor not less than 1 year under an

employer shall be retrenched by thatemployer until-

a) The workman has been given 1months notice in writing. The notice

must indicate the reason forretrenchment.


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Further the workman cannot be retrencheduntil the period of notice has expired, orthe work has been paid in lieu of suchnotice wages for the period of the

notice.(Sec.25-F(a)).b) The workman has been paid, at te time of

retrenchment, compensation which isequivalent to 15 days average pay for

every completed year of continuous serviceor any part thereof in excess of 6 months(Sec.25-F(b)).


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c. Notice in the prescribed manner isserved on the appropriate Govt. orsuch authority as may be specified by

the appropriate Govt. by notificationin the Official Gazette (Sec.25-F(c)).

d f h


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Procedure for Retrenchment(Sec.25-G)

Who is a citizen of India, is to beretrenched and he belongs to aparticular category of workmen in

that establishment. In the absence ofany agreement between the employerand the workman in this behalf, the

employer shall ordinarily retrench theworkman who was the last person tobe employed in that category.


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Principle of last come first go. Sec.25-G of the Act applies the rule of lastcome first go to retrenchment.

R l t f t h d


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Re-employment of retrenchedworkmen (Sec.25-H)

Where any workmen retrenched, andthe employer proposes to take intohis employ any persons, he shall give

an opportunity to the retrenchedworkmen who are citizens of India tooffer themselves for re-employment.

The retrenched workmen who offer

themselves for re-employment shallhave preference over other persons.


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Wages

Wages means all remuneration capableof being expressed in terms ofmoney, which would, if the terms of

employment, express or implied,were fulfilled, be payable to aworkman in respect of his

employment or work done in suchemployment.

What is included in wages? It


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What is included in wages ? Itincludes-

(i) Such allowances (including dearnessallowance)

(ii) The value of any houseaccommodation, or supply of light,water, medical attendance or otheramenity or of any service or of any

concessional supply of food grains orother articles.


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(iii) Any travelling concession;

(iv) Any commission payable on thepromotion of sales or business orboth. Has been added by theAmendment Act of 1982.


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What is not included in wages

(a)Any bonus;

(b)Any contribution paid or payable bythe employer to any pension fund orprovident fund or for the benefit ofworkmen under any law for the timebeing in force;

(c)Any gratuity payable on thetermination of his service.

Prohibition of lay off


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Prohibition of lay-off(Sec.25-M)

1. Lay-off has to be with permissionfrom appropriate Govt. or specifiedauthority If such a lay-off is due to

shortage of power or to naturalcalamity, and in the case of mine,such a lay-off is due to fire, flood,

excess of inflammable gas orexplosion, no such permission shallbe required (Sec.25-M (1)).


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2. Application to be made by theemployer for permission. Sec. 25-M(1) and the copy shall also be served

on the concerned workman in theprescribed manner (Sec.25-M(2).


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3. Application for permission to continuelay-off in a mine. Sec.25-M(1). Theapplication shall be made within a

period of 30 days from the date ofcommencement of such lay-off(Sec.25-M(3)).


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4. Order granting or refusing permissionfor lay-off to be communicated toemployer and workmen Sec.25-

M(1) or (3). The Govt. or thespecified authority may by order andfor the reasons to be recorded in

writing grant or refuse to grant suchpermission. Sec.25-M(4).


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5. Presumption of permission of noorder communicated within 60 days Sec.25-M(1) or (3) where an

application is made to authority doesnot communicate the order ofgranting or refusing to grant

permission to the employer within aperiod of 60 days from the date, shallbe deemed to have been granted onthe expiration of 60 days (Sec.25-

M(5))


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6. Order binding on all parties for oneyear An order of the appropriateGovt. or the specified authority

granting or refusing to grantpermission shall be final and bindingon all the parties concerned and

remain in force one year from thedate of such order. Subject to theprovisions of Sec. 25-M(7) Sec.25-M(7)


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7. Review of order Sec.25-M(4) orrefer the matter to an IndustrialTribunal for adjudication (Sec.25-

M(7). Where a reference has beenmade to a Tribunal, the Tribunal shallpass an award within a period of 30

days from the date of such reference( Proviso to sec.25-M(7)).


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8. Lay-off illegal in certain cases (a)where an application for permissionunder Sec.25-M(1) is made, or

(b) Where no application has beenmade Sec.25-M(3) within the periodspecified therein(30 days)

(c) Where the permission for any lay-offhas been refused.

Workers are entitled for all benefits

Sec.25-M(8).


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9. Exemption If the appropriate Govt.owing to such exceptionalcircumstances as accident in the

establishment or death of theemployer or the like Sec.25-M(1) orSec.25-M(3) shall not apply in

relation to such establishment forsuch period as nay be specified in theorder (Sec.25-M(9).


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10 Sec25-C to apply Where aworkman is laid-off lawfully underSec.25-M, the provisions of Sec.25-C

9other than the second Provisothereto) shall apply (Sec.25-M(10)).

No laying-off if alternative employment

is offeredPenalty for illegal lay-off Impriosment

up to 1 month or fine up to Rs.1,000

IRLL - Industrial Dispute Act 1947

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Transcript of IRLL - Industrial Dispute Act 1947