Industrial dispute Act 1947

 The main objects of the act
1,to secure industrial peace
a) by preventing and settling industrial disputes
between the employers and workmen.
b) by securing and preserving amity and good
relations ,through an internal works committee,
c) by promoting good relations, through an external
2,to ameliorate the condition of workmen in industry
a) by redressal of grievances of workmen
b) by providing job security

 Any systematic activity organized or arranged in a
manner in which trade or business was generally
organized or arranged would be an industry even if
it proceeded from charitable motives. it was the
nature of the activity that had to be considered
and it was upon the application of that test that
even the states inalienable functions fell within the
definition of industry.
 Included in term industry
a) Any activity of the dock labour board established
under sec.5-Aof the dock workers Act,1948;
b) Any activity relating to the promotion of sales or
business or both carried on by an establishment.

 Not included in term industry
a) Any agricultural operation except where such
agricultural operation is carried on in an integrated
manner with any other systematic activity.
b) Hospitals or dispensaries.
c) Educational scientific, research or training
institutions.
d) Institutions owned or managed by organizations.
e) Khadi or village industries.
f) Any domestic service.

“Industry means any business, trade,
undertaking, manufacture or calling of
employees and includes any
callings,service, employment, handicraft
or
industrial occupation or avocation of
workmen.

 Industrial dispute means any dispute or difference
between –
 Employers and employers
 Employers and workmen
 Workmen and workmen.
Three ingredients are:
 There should be real and substantial dispute or
difference.
 The disputes or difference should be between
employer and his workmen.
 The disputes or difference must be connected with
the employment or non- employment or terms of
employment, or with the conditions of labour of
any person.

1) Appropriate government [sec. 2 (a)]
2) Average pay [sec.2 (aaa)]
3) Award [sec.2(b)]
4) Board [sec.2 (c)]
5) Closure [sec.2.(cc)]
6) Conciliation officer [sec.2. (d)]
7) Conciliation proceeding [sec.2 .(e)]
8) Controlled industry [sec.2 (ee)]
9) Court [sec.2 (f)]
10) Employer [sec.2 (g)]
11) Executive and office bearer in relation to a trade
union [sec.2(gg)] and sec.2(iii)].
12) Independent person [sec.2(i)]
13) Industrial establishment or undertaking [sec.2(ka)]

14) Labour court [sec.2.(kkb)].
15) Lay-off [sec.2(kkk)]
16) Lock –out [sec.2 (l)]
17) National tribunal [sec.2(ll)]
18) public utility service [sec.2 (n)]
19) Retrenchment [sec.2.(oo)]
20) Settlement [sec.2.(p)]
21) Strike [sec.2.(g)]
22) Trade union [sec.2(qq)]
23) Tribunal [sec.2.(r)]
24) Unfair labour practices [sec.2.(ra)]

 I.- on the part of employers trade unions of
employers
 1. to interfere with workmen in the exercise of their
right to organize or to engage in concerted
activities for the purpose of collective bargaining
or other mutual aid
 A) threatening workmen with discharge of dismissal
 B) threatening a lock-out or closure
 2. to dominate any trade union,
 A ) an employer taking active interest in organizing
a trade union
 B ) an employer showing partiality or granting
favour to one of several trade unions attempting to
organize his workmen
 3.to establish employer- sponsored trade unions of
workmen.

 4.to encourage or discourage membership in any
trade union by discriminating any workman
 A) punishing a workman because he urged other
workmen to join or organize a trade union
 B) discharging a workman for taking part in any
strike
 C) changing seniority rating of workman
 D) refusing to promote workman to higher posts
 5. to discharge or dismiss workmen
 A) by way of victimization
 B) not in good faith but in colourable exercise of
the employer’s right
 C) for patently false reasons
 D) on untrue allegations of absence without leave
 E) disregarding the principles of natural justice

 6. to abolish the work of regular nature being done
by workmen, and to give such works to contractors
as a measure of breaking a strike
 7. to transfer a workman from one place to another
 8. to show favoritism to one set of workers
regardless of merit.
 9. to employ workmen as temporaries and to
continue them as such for years.
 10. to discharge workman with filing charges or
testifying against an employer
 11. to recruit workmen during strike which is not an
illegal strike
 12. failure to implement award , settlement or
agreement
 To indulge in acts of force or violence

 1. to be actively support or instigate any strike
deemed to be illegal under this act.
 2. to coerce workmen in the exercise of their right
to self organization or to join a trade union
 3. to refuse to bargain collectively in good faith
with the employer
 4. to indulge in coercive activities against
certification of bargaining representative
 5. to encourage or instigate such forms of coercive
actions willful, squatting on the work premises after
working hours
 6. demonstrations at the residences of the
employers or the managerial staff members.
 7. to indulge in willful damage to employer’s
property connected with the industry.
 8. to indulge in acts of force or violence or to hold
out threats of intimidation against any workman

 ‘wages’ means all remuneration capable of being
expressed in terms of money, which would ,if the terms
of employment express or implied, were fulfilled be
payable to a workman in respect of his employment.
 It includes :
 i) allowances
 ii) house accommodation, supply of water,light,medical
facility or any other services
 iii) traveling concessions
 iv) commissions payable on sales or business
 ‘wage’ does not include :
 i) bonus
 ii) contribution paid by the employer to any pension
fund or PF fund
 iii) gratuity payable on the termination of his service.

‘ workman’ means any person employed in any
industry to do any manual, unskilled, skilled,
technical, operational, clerical or supervisory work
for hire or reward. His terms of employment may be
express or implied.
‘workman’ does not include any person –
• Who is subject to the Air force act,1950, or the
Army act,1950, or the Navy act,1957
• Who is employed in police service or as an officer
or other employee of a prison;
• Who is in managerial or administrative capacity
• Who being employed in supervisory capacity,
draws wages exceeding Rs. 1600

1. Works committees (sec.3)
2. Conciliation officers (sec.4)
3. Boards of conciliation (sec.5)
4. Courts of inquiry (sec.6)
5. Labour court (sec.7)
6. Industrial tribunals (sec.7-a)
7. National tribunals (sec.7-b)
The act provides for the following settlement of
disputes under the act :
i) Voluntary settlement and conciliation
ii) Adjudication, and
iii) Arbitration

1. works committees (sec.3)
It consists of representatives of employers
and workmen's engaged in the
establishment.
Powers and duties :
 To promote measures for securing and
preserving goodwill and good relations
between employers and workmen
 Comment upon matters of their common
interest or concern
 Endeavour to compose any material
difference of opinion in respect of such
matters.

2. Conciliation officers (sec.4)
Duties :
 To hold conciliation proceedings.
 To investigate the dispute
 To send a report and memorandum of
settlement
to appropriate government
 To send a full report
Powers :
 Power to enter premises
 Power to call for and inspect documents.
3. Board of conciliation (sec.5)
Duties :
 To bring about a settlement of dispute
 To send a report and memorandum of
settlement to the appropriate govt.

 To communicate reasons to the parties if no
further references made
 To submit reports within 2 months
Power :
 Power to civil court
4. Courts of inquiry (sec,6)
Duties :
 To inquire into the matters referred to it and
report thereon
 To stand by the principles of fairplay and
justice
Powers :
 Power of civil court

Secs. 7 to 9 pertain to the constitution of
adjudication authorities under the Act.
These authorities are:
1. Labour courts (sec. 7)
Appointment and
constitution. The appropriate government
may, by notification in the official Gazette,
constitute one or more Labour courts for
adjudication of industrial disputes relating to
any matters specified in the second schedule

* The property or legality of an order passed by an
employer under the standing orders.
* The application and interpretation of standing
orders.
* Discharge or dismissal of workmen
* Withdrawal of any customary concession or
privilege.
* Illegally or otherwise of a strike or lock-out
* All matters other than those specified in third
schedule.
DUTIES:
* To adjudicate upon industrial disputes relating to
matters specified in second schedule.
* To give award within the specified period.

Powers:
* Power to enter premises.
* Powers of civil court.
Matters relating with jurisdiction of industrial Tribunal
 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
 Rationalization.
 Retrenchment of workmen and closure of
establishment.
 Any other matter that may be prescribed.
POWERS:
 Power to enter premises.
 Powers of civil court.
 Power to appoint assessors.
 Power to award costs.
DUTIES:
where an industrial dispute has been referred to
a tribunal for adjudication, it shall hold its
proceedings expeditiously and shall, within the
period specified in the order preferring.

Appointments and constitution:
The central government may, by notification
In the official gazette, constitute one or more national
industrial tribunals for the adjudication of industrial
disputes which, in the opinion of central govt., involve
questions of national importance or are of such a
nature that industrial establishments situated in more
than one state are likely to be interested in, or affected
by, such disputes.[sec7-B)1].
DUTIES:
* Where an industrial dispute has been referred to national
tribunal for adjudication,
* It shall hold its proceedings expeditiously .
* Within the period specified in the order referring such industrial
disputes, submit its award to the appropriate govt. [sec 15]

POWERS:
1. power to enter premises
2. powers of civil court
3. power to appoint assessors
4. power to award costs
NOTICE OF CHANGE IN CONDITIONS OF SERVICE
 According to sec 9-A,no employer who
proposes to effect any change in the
conditions of service applicable to any
workmen in respect of any matter specified in
the fourth schedule shall effect such change.
(a) Without giving to workmen likely to be
affected by such change a notice in the
prescribed manner of the nature of the change
proposed to be effected.
(b) Within 21 days of giving such notice sec(9)

Reference to national tribunal
Where the central govt., is of opinion that –
1. Any industrial dispute exists
2. Is apprehended
3. The dispute involves any question of national
importance
4. Is of such a nature that industrial
establishment situated in more than one state
are likely to be interested in ,or affected by ,
such dispute
5. That the dispute should be adjudicated by
national tribunal
 Publication of reports and awards sec 17
(1) Every report of a board of conciliation or
court of inquiry together with any minute of
dissent recorded therewith.

(2) Every arbitration award
(3) Every award of a labour court, industrial or
national tribunal
Period of operation of settlement :
1.On such date as is agreed upon by parties to
dispute
2. If no date is agreed upon , on the date on
which the memorandum of settlement is
signed by parties to dispute
Period of operation of award:
An award shall subject to prov: of sec 19
remain in operation for a period of 1 year
from the date on which the award becomes
enforceable

Prohibition of strikes and lock outs (sec 22 & 23)
1. Strike in a public utility service [sec 22(1)]
No person employed in a public utility service
shall go on strike in breach of a contract-
a) Without giving to employer notice of strike,
within six weeks before striking.
b) Within 14 days of giving such notice
c) Before the expiry of the date of strike
specified in the notice.
d) During pendancy of any conciliation
proceedings.

2. lock out in a public utility service sec 22(2)
No employer carrying on any public utility service
shall lock out any of his workmen-
* Without giving them notice of lock out, within 6
weeks before locking out
* Within 14 days of giving such notice.
* Before the expiry of date of lock-out specified
* During the pendency of any conciliation
proceedings.
3.Strike and lock outs in an industrial establishments
sec23
No workmen shall go for or no employer shall
declare a lock out-
* During pendency of conciliation proceedings
before a board of conciliation
* During pendency of proceedings before a labour
court, industrial tribunal or national tribunal and 2
months after proceedings

Illegal strikes and lock outs:(sec.24)
A strike is illegal if –
(a) it is commenced in contravention of sec 22
or 23
(b) it is continued in contravention of an order
made under sec10 (3)
LAY OFF AND RETRENCHMENT
 APPLICATION OF sec 25-c to sec 25E
The provisions as to lay off and retrenchment of
workmen as in person in secs. 25-C to 25-E.
 UNDER THE sec25-B
 A workmanship shall be said to be in
continuous service for a period if he is, for that
period , in uninterrupted services.
 services including:
 Sickness
 Authorized leave

 An accident
 A strike which is not illegal
 A lock-out or a cessation of work which is not
due to any fault on the part of the workman.
LAY –OFF
 Right of workmen laid-off for compensation's 25-c)
1,The work men must not be a badli workman or a casual
workman if he is to be entitled to compensation.
2,His name must be borne on the master rolls of the
industrial establishment,
3,He must have completed not less than one year of
continuous services.
4,If the above conditions are fulfilled the workman
whether laid-off continuously or intermittently shall be
paid compensation by the employer for all days during
which he is laid off, except for such weekly holidays as
may intervene.

5,The rate of compensation shall be equal to 50% of the
total basis of wages and dearness allowance that
would have been payable to him had he not been
laid off (sec 25-c).
6,If during any period of 12 months, a workman is so laid
off for more than 45 days.
RETRECHMENT
Conditions precedent to retrenchment of
workmen(sec.25-F)
No workman employed in any industry who has been
in continuous service for not less than 1year under an
employer shall be retrenched by that employer.
PRODUCE FOR RETRENCHMENT
 where an workmen in an industrial establishment ,
who is a citizen of India, is to be retrenched and he
belongs to a particular category of workmen in that
establishment.

TRANSFER AND CLOSING DOWN OF UNDERTAKING
A workman shall not be entitled to notice and
compensation where there has been the change of
employers by reason of the transfer.
A .The service of workman has not been interrupted by
such transfers.
B .The terms and conditions of service applicable to the
workman after such transfer are not in any way less
favorable to the workmen than those applicable to
him immediately.
C .The new employer is under the terms of such transfer.
60 days notice to be given of intention to close down
any undertaking (sec 25- FFA).
 An undertaking in which-less than 50 workman are
employed, less than 50 workman were employed on an
avg per working day in the preceding 12 months.
 Accident in the undertaking or death of the employer
(sec-FFA[2]).

COMPENSATION TO WORKMEN IN
CASE OF CLOSING DOWN OF
UNDERTAKINGS.
where an undertaking is closed for any
reason whatsoever, every workman who
has been in continuous service for less than
1 year
 Financial difficulties( including losses)
 Accumulation of indisposed of stocks.
 The expiry of the period of the lease or the
lien granted to it.
closing down of an undertaking set up for
construction of buildings, bridges ,canals
,roads, dams.

PROHIBITION OF LAYOFF
1,Lay off to be with permission from appropriate
government or specified authority.
2,Application to be made by the employer or permission.
3,Application for permission to continue lay-off in a mine.
4,Order granting or refusing permission for lay-off to be
communicated to employer and workmen.
5,Presumption of permission if no order communicated
with in 60 days.
6,Order binding for all parties for 1 year.
7,Review of order.
8,Lay-off illegal in certain cases.
9,Exemption.
penalty for illegal lay-off. The penalty for illegal lay-off is
imprisonment up to 1 month or fine up to Rs. 1,000 or
both(sec.25-n).

1,3 months notice and prior permission of the appropriate
Government or the specified authority required before
retrenchment.
2,Application to be made for permission.
3,Order granting or refusing permission for retrenchment
to be communicated to employer and workmen.
4,Presumption of permission if no order communicated
within 60 days.
5,Order binding on all parties for 1 year.
6,Review of order.
7,Consequences of illegal retrenchment.
8,Exemption.
9,Compensation in case of permission for retrenchment-
15 days wages for every completed year of service.
penalty for illegal retrenchment is imprisonment up to 1
month or fine up to Rs.1000 (or) both.

 Application for permission to close to be made at
least 90 days before the intended date of closure.
 Sec. 25- shall not, however, apply to an undertaking
set up for the construction of buildings, bridges, roads,
canals, dams or for other construction work.
 Order granting or refusing permission to be
communicated to employer and workmen.
› the genuineness and adequacy of the reasons
stated by the employer;
› the interests of the general public, and
› all other relevant factors.
 The compensation shall be equivalent to 15 days’
average pay for every completed year of continuous
service or any part thereof in excess of 6 months
[sec.25-O(8)].

 Presumption of permission if no order
communicated within 60 days. Under [sec.25-
O 94)].
 Order granting or refusing permission final and
binding on all parties for 1 year. [sec.25-O(4)].
 Review of order.
› review its order granting or refusing to
grant permission, or
› refer the matter to an Industrial Tribunal for
adjudication [Sec.25-O (5)]
 Consequences of illegal closure.
 Exemption:
 Penalty for closure (Sec.25-R)
 Shall be punishable with imprisonment for a
term which may extend to 6 months, or with
fine which may extend to Rs.500, or with both
[Sec.25-R(1)].

 The Amendment Act of 1982 has introduced a new
Chapter V-C containing two Secs. 25-T and 25-U.
 Prohibition of unfair labour practice (Sec. 25-T)
 Penalty for committing unfair labour practice (sec. 25-U)
PENALTIES:
Penalty for general offences [sec.31(2)], if no other be
punishable with fine which may extend to Rs.100.
MISCELLANEOUS:
Offences by companies, etc. (Sec.32), where a person
committing an offence under this Act is a company or
other body corporate or an association of persons,
every director, manager, secretary, agent or other
officer or person concerned with the management
thereof shall be deemed to be guilty of such offence.

 Conditions of service to remain unchanged during
pendency of proceedings (sec.33)
 Employer not to alter conditions of service or punish
for misconduct during pendency of proceedings
[sec.33(1)].
 in regard to any matter connected with the
dispute , alter, to the prejudice of the workmen
concerned in such dispute, the conditions of
service applicable to them immediately before
the commencement of such proceeding
 [Sec.33(1) (a)];
 for any misconduct connected with the dispute,
discharge or punish, whether by dismissal or
otherwise any workmen connected in such dispute
[sec.33(1)(b)].

 Shall be punishable for a term which may extend to 6
months, or with fine which may extend to Rs.100 or with
both.
 Recovery of money due from an employer (Sec.33-C)
 Cognizance of offences (Sec.34)
 No court inferior to that of a Metropolitan Magistrate
or a Judicial Magistrate of the First Class shall try any
offence punishable under this Act [sec.3492)]
 Protection of persons (Sec.35)
 expulsion from any trade union or society, or
 any fine or penalty, or
 deprivation of any right or benefit to which he or his
legal representatives would otherwise be entitled, or

 any disability either directly or indirectly or any
disadvantage as compared with other members
of the union or society {sec.35(1)]
› Representation of parties (sec.36)
 any member of the executive or other office-
bearer of a registered trade union of which he is a
member;
 where the worker is not a member of any trade
union, by any member of the executive or other
office-bearer of any trade union connected with,
or by any other workman employed in, the
industry .
› Representation of employers.
 an officer of an association of employers of which
he is a member;
 an officer of a federation of association of
employers of which the association referred to in
clause (a) is affiliated;

 Power to remove difficulties (sec.36-A)
 Power to exempt (sec.36-B)
 Protection of action taken under the Act (sec.37)
 Power to make rules (sec.38)

Industrial dispute Act 1947

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