Dispute: Industrial dispute means any dispute or difference between
employers and employers, or between employers and workmen or
between workmen and workmen, which is connected with employment
or non-employment or the terms of employmentor non employment or the terms of employment .
• The dispute has to be between plurality of workman and employer.
Individual workman cannot raise an industrial disputeIndividual workman cannot raise an industrial dispute
• A workman can raise a dispute directly before a Conciliation Officer in
the case of discharge, dismissal, retrenchment or any form of
termination of service. In all other cases, the dispute has to be raised
by a Union / Management.
• Disputes may lead to loss of work usually calculated in terms of Man-
days lost. This is given as total working days lost within a period
( ) f f(usually one year). This figure is computed by multiplying the number of
days with the number of affected employees.
Causes of Disputes in India
The causes of industrial disputes can be broadly classified into two
categories: economic and non-economic causes.
• The economic factors will include issues relating to compensation like
wages, bonus, allowances, and conditions for work, working hours,
leave and holidays without pay, unjust layoffs and retrenchments.
• The non economic factors will include victimization of workers, ill
treatment by staff members, sympathetic strikes, political factors,
• Miscellaneous Factors: The miscellaneous factors include
- Inter/Intra Union Rivalry
- Charter of Demands
- Work Load
St di d / l / i diti / f t- Standing orders/rules/service conditions/safety measures
- Non-implementation of agreements and awards etc.
A: Agriculture and forestry B: Fishing C: Mining and Quarrying D: Manufacturing
E: Electricity, gas and supply F: Construction G: Wholesale & retail trade H: Hotels and restaurants I:
Transport & communication J: Financial intermediation K: Real estate L: Public Administration M: Education
N: Healthcare O: Community services P: Private households
KEY PROVISIONS OF ID ACT (1947):
COLLECTIVE BARGAINING: It is a technique by which disputes as to
conditions of employment are resolved amicably, by agreement
rather than coercion
CONCILIATION AND MEDIATION: It is facilitated negotiation,
essential in public utility services. Binding on parties to the
ARBITRATION: Agreement between workman and management with
the help of arbitrator
ADJUDICATION: Compulsary legal action
Compulsory Adjudication LC, IT, NT
Award Sec. 18(3) of ID Act
Reference by the
Publication of award
S. 2-A, 33-A
Judicial review - Art. 226 or
Voluntary Arbitration – 10-A
Sec. 18(3) of
The I D act
Award – 18(2) & 18(3)
Judicial review - Art. 226 or
C ll ti B i iCollective Bargaining –
If successful – settlement
Sec. 18(1) of ID Act
– Impartial third party who helps the two parties to reach a mutually
– The mediator is any independent entity
– Is invited by the disputing parties themselves
– Mediator only helps the two parties discuss issuesMediator only helps the two parties discuss issues
– Mediator does not gives any decision/award/judgement
– He/she only guides the discussion and enables the two parties to
reach at a consensusreach at a consensus
– Final agreement is made by the two parties themselves.
– Win-win arrangement
– Highly informal arrangement
– Impartial third party helps the two parties to reach a mutually acceptable
C ili t t ti t l t th t h i f ti– Conciliator meets parties separately or together to exchange information,
clarify issues and settle misunderstanding.
– Conciliator does not impose a solution but works with the parties to enable
them to come to an agreementthem to come to an agreement.
– He may give his views and possible solutions but not judgement
– In India, conciliation officers and conciliation boards are also provided
region-wise as per the provisions of ID act.region wise as per the provisions of ID act.
– Win-win arrangement
– Slightly more formal than mediation
• The Organization of the Chief Labour Commissioner(Central) acts as theThe Organization of the Chief Labour Commissioner(Central) acts as the
primary conciliatory agency in the Central Government for industrial
disputes. Then there are the Regional Labour Commissioners (Central) and
Assistant Labour Commissioners (Central) who on behalf of the Chief Labour
C i i (C t l) t C ili t Offi i diff t t f thCommissioner (Central) act as Conciliatory Officers in different parts of the
country. The Conciliation Officer make efforts to resolve the dispute through
settlement between the workmen and the management. .
– Third party settles the dispute by making an independent decision
for the two parties.
Wh i d t i l di t i t d th l d th– Where any industrial dispute exists and the employer and the
workmen agree to refer the dispute to arbitration, they may, by a
written agreement, refer the dispute to arbitration to such person or
persons as may be specified in the arbitration agreement. Such apersons as may be specified in the arbitration agreement. Such a
person could be a legal expert, a retired judge etc.
– The arbitrator or arbitrators shall investigate the dispute and submit
to the appropriate Government the arbitration award signed by the
arbitrator or all the arbitrators, as the case may be.
– Some prefer arbitration, as the responsibility “for reaching
agreement” is made by a neutral party (quite often, appointed by
the government)the government).
– Arbitration gives some people the impression that they did not give
in to the other party but “fought all the way” to the Arbitration Court.
– Maybe win-loseMaybe win-lose
• In case of failure of conciliation or arbitration, a report is sent to Government (IR Desks in
Ministry of Labour). The Ministry of Labour refers the dispute for adjudication.
• The Industrial Disputes Act, 1947 provides for setting up of Labour Courts, IndustrialThe Industrial Disputes Act, 1947 provides for setting up of Labour Courts, Industrial
Tribunals and National Tribunals.
• Labour Courts and Industrial Tribunals are set up by the Central Government and the
State Government for for dealing with matters which fall in the Central and the State
sphere respectivelysphere respectively.
• Where the dispute is referred for adjudication , within two weeks of the date of receipt of
the order of reference, the party representing workmen and employer involved in the
dispute must file with these authorities, a statement of demands relating only to the issues
as are included in the order of referenceas are included in the order of reference.
• The next step after filing of statement is to fix up the date which first hearing of the
dispute will take place. The hearing must ordinarily be continued from day to day and
arguments must follow immediately after the closing evidence.
• Where an industrial dispute has been referred to a labour court, tribunal or national
tribunal for adjudication, it shall hold its proceedings expeditiously and shall as soon as it
is practicable and submit its award to the appropriate government.
• Tribunals have power to pass the award and this award is binding on both the parties top p g p
the dispute an is submitted to the government. The Ministry of Labour publishes the
Award in the Official Gazette within a period of 30 days from the date of receipt of the
• The adjudicating authority enjoys same powers as are vested in a civil court (under the
code of civil procedure, 1908). these are:
(i) Entering the premises, for the purpose of enquiry into any existing or apprehended
disputes, after giving reasonable notice.
(ii) enforcing attendance of any person and examining him or oath; it may accept, admit
or call for evidence at any stage of the proceeding.
(iii) compelling the production of documents and material objects and their inspection, for
its the authority must assign reasons.
(iv) issuing commission for the examination for witness.
(v) appointing one or more persons as assessor or assessors to advise it in the
proceedings before it.
(vi) determining the costs of , and incidental to,any proceedings before the adjudication
• There are at present 17 Central Government Industrial Tribunals-cum-Labour Courts.There are at present 17 Central Government Industrial Tribunals cum Labour Courts.
These CGTIs-cum-Labour Courts are at New Delhi, Mumbai (2 CGITs), Bangalore,
Kolkata, Asansol, Dhanbad (2 CGITs), Jabalpur, Chandigarh, Kanpur, Jaipur, Lucknow,
Nagpur, Hyderabad, Chennai and Bhubaneshwar. Out of these CGITs, 2 CGITs namely
Mumbai-I and Kolkata have been declared as National Tribunals.Mumbai I and Kolkata have been declared as National Tribunals.
The Presiding Officer of a Labour Court should at least have held a judicial office for not less
than 7 years or been a Presiding Officer of a labour Court under a State Act for not less
than 5 years. He may also have higher qualifications such as being a District Judge or any y g q g g
Additional District Judge for three years or a High Court Judge.
The Second Schedule of the I.D. Act deals with matters within the jurisdiction of Labour
Courts which fall under the category of Rights Disputes. Such disputes are as follows:
• The propriety or legality of an order passed by an employer under the standing orders;• The propriety or legality of an order passed by an employer under the standing orders;
• The application and interpretation of standing orders which regulate conditions of
• Discharge or dismissal of workmen including reinstatement of, or grant of relief to,
workmen wrongfully dismissed;
• Withdrawal of any customary concession or privilege;
• Illegality or otherwise of a strike or lock-out; and
• All matters other than those specified in the Third Schedule• All matters other than those specified in the Third Schedule.
The Presiding Officer of an Industrial Tribunal should have been at least a District Judge or
an Additional District Judge for three years. Alternatively, he should have held the post of
a judge in a High Court. No person can be appointed as the presiding Officer of aj g g p pp p g
National Tribunal unless he has held the post of a Judge in a High Court.
The Third Schedule of the I.D. Act deals with matters within the jurisdiction of Industrial
Tribunals which could be classified as Interest Disputes These are as follows:Tribunals which could be classified as Interest Disputes. These are as follows:-
• Wages, including the period and mode of payment;
• Compensatory and other allowances;
• Hours of work and rest intervals;;
• Leave with wages and holidays;
• Bonus, profit sharing, provident fund and gratuity;
• Shift working otherwise than in accordance with standing orders;
• Classification by grades;
• Rules of discipline;
• Retrenchment of workmen and closure of establishment; and
• Any other matter that may be prescribed• Any other matter that may be prescribed.
• The Central Government may set up a National Tribunal for adjudication of industrial
disputes which in its opinion involve questions of national importance or are of such
nature that industrial establishments in more than one State are likely to be interested iny
• No person can be appointed as the presiding Officer of a National Tribunal unless he has
held the post of a Judge in a High Court.
• National tribunal shall take up only those cases which are referred by the Central Govt• National tribunal shall take up only those cases which are referred by the Central Govt.
THE INDUSTRIAL DISPUTES (AMENDMENT) BILL, 2010 PASSED BY THE
• To provide a grievance ventilation and redressal machinery within an establishment
having 20 or more workmen with one stage appeal at the level of the Head of the
Industrial Establishment in order to promote better industrial relations at the industrial
• The Bill also proposes to empower the Labour Court or Tribunal to execute their awards,
orders of settlements arrived at as a decree of a Civil Court. This amendment will ensure
better enforcement of the awards given by CGITs-cum-LC.
• To provide individual workman more free and direct access to Labour Courts/ TribunalsTo provide individual workman more free and direct access to Labour Courts/ Tribunals
in cases of retrenchment, discharge, dismissal or termination of services.
• To amplify the definition of term ‘appropriate Government’ the Standing Committee has
suggested that the industrial disputes between a contractor and contract labour employed
in any industrial establishment needs to be brought under the purview of ‘appropriatein any industrial establishment needs to be brought under the purview of appropriate