The industrial disputes act, 1947..

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The industrial disputes act, 1947..

  1. 1. The Industrial Disputes Act, 1947<br />
  2. 2. <ul><li>APPLICABILITY OF THE ACT</li></ul>The act came in to force on the 1st day of April 1947<br />The act extends to the whole of India.<br /><ul><li> SECTIONS & SCHEDULES
  3. 3. 40 sections
  4. 4. 5 schedules</li></li></ul><li>IMPORTANT DEFINITION<br />Appropriate Government [Sec.2(a)]<br />Industry [Sec.2(j)]<br />Industrial Dispute [Sec.2(k)]<br />Wages [Sec.2(rr)]<br />Workman [Sec.2(s)]<br />
  5. 5. STRIKE<br /><ul><li>Sec. 2(q) defines a strike as follows:</li></ul>The cessation of work by a body of persons employed in any industry acting in combination ; or<br />A concerted refusal, or a refusal under a common understanding, of any number of persons who are, or have been, so employed to continue to work or accept employment.<br />
  6. 6. LOCK-OUT<br /><ul><li>A lock-out means [Sec.2(l)]
  7. 7. the closing of a place of employment; or
  8. 8. the suspension of work; or
  9. 9. the refusal by an employer to continue to employ any number of persons employed by him.
  10. 10. It means the closure of the place of business and not closure of business itself.</li></li></ul><li>PROHIBITION OF STRIKES & LOCKOUTS<br />No person in a public utility service shall go on strike in breach of contract or lock-out any of his workmen[Sec.22(1)(2)] :- <br />Without giving the notice and after 6 weeks of notice<br />Within 14days of giving such notice<br />Before the date specified in such notice<br />Conciliation going on before a Board of Conciliation & 7 days thereafter.<br />
  11. 11. (Cont……)<br />The notice shall not be necessary where there is already in existence a strike or lock-out in the public utility service.<br />The notice shall be given in such manner as may be prescribed.<br />The employer shall report to the appropriate govt. or any legal authority regarding the no. of notices that he received or gave within 5 days <br />
  12. 12. (Cont….)<br />No workman or employer shall go on strike or declare a lockout [Sec.23] :<br />During adjudication before a Board and 7days thereafter.<br />During adjudication before a labour Court, Tribunal & National Tribunal and 2 months thereafter.<br />During arbitration before an Arbitrator & 2 months thereafter.<br />A settlement or an award is in operation<br />
  13. 13. ILLEGAL STRIKES/LOCKOUTS<br />In public Utility Services [Sec.22(1)&(2),23,30,19]<br />Without giving 14 days notice<br />Commenced after 42 days of notice<br />Prior to the date indicated in the notice.<br />During the pendency of proceedings<br />During the period when a settlement or award is in operation on same matters.<br />
  14. 14. (Cont……)<br />In non public utility services [Sec.23,20,19]<br />In breach of contract<br />During the pendency of proceedings<br />During the settlement or award is in operation<br /><ul><li>IN BOTH THE STRIKE/LOCKOUT WILL BE ILLIGAL IF CONTINUED AFTER GOVT. BANNING. [Sec.10(4A),24]</li></li></ul><li>PENALTY<br /><ul><li>Penalty for illegal strikes (Sec 26):</li></ul>Imprisonment for a term which may extend to 1 month, or with fine which may extend to Rs. 50, or with both.<br /><ul><li>Penalty for instigation of illegal strikes (sec. 27):</li></ul>Imprisonment for a term up to 6 moths., or a fine up to Rs. 1000, or with both.<br /><ul><li>Penalty for giving financial aid to illegal strikes (sec. 28):</li></ul>Imprisonment for a term up to 6 moths., or a fine up to Rs. 1000, or with both. <br /><ul><li>Penalty for illegal lock-outs
  15. 15. Imprisonment for a term extending to 1 month or with fine up to Rs. 1000 or with both.</li></li></ul><li>LAY-OFF<br /><ul><li>Definition [Sec.2 (kkk)]</li></ul> “Lay-off” means the failure, refusal or inability of an employer on account of shortage of coal, power or raw materials or the accumulation of stocks or the break-down of machinery or natural calamity or for any other connected reason to give employment to a workman whose name is borne on the muster rolls of his industrial establishment and who has not been retrenched<br />
  16. 16. LAY OFF COMPENSATION<br /><ul><li>50% of basic + dearness allowance. [Sec. 25C]
  17. 17. In case, permission is not obtain/refused, full wages. [Sec. 25M(8)]
  18. 18. If the employee refuse to accept alternative employment under the same employer within a radius of 5 miles, the worker is not eligible for any compensation. [Sec. 25E(1)]
  19. 19. If not reported for attendance, no compensation. [Sec. 25E(2)]
  20. 20. If layoff is due to strike or go slow by another section of the unit, no compensation. [Sec. 25E(3)]</li></li></ul><li>PROCEDURE TO APPLY FOR LAYOFF PERMISSION<br />Establishments covered under shall make application to appropriate Govt. in Form 03 [Sec. 25M]<br />Govt. may grant/refuse permission within 60 days. If no reply is received within 60 days permission can be assumed. [Sec. 25M(5)]<br />
  21. 21. RETRENCHMENT<br /><ul><li>Definition
  22. 22. Sec. 2 (oo) defines Retrenchment as the termination by the employer of the service of the workman for any reason whatsoever, otherwise than a punishment inflicted by way of disciplinary action.
  23. 23. Retrenchment does not include voluntary retirement superannuation or termination of employment on grounds of ill health.</li></li></ul><li>CONDITIONS PRECEDENT TO RETRENCHMENT OF WORKMEN<br /><ul><li>No workmen [Chapter VA]who has been employed for not less then 1 year can be retrenched until [Sec.25F]:
  24. 24. 1 month notice in written & reason for retrenchment.
  25. 25. 15 days average pay for every completed year of service.
  26. 26. Notice served to the appropriate government.</li></li></ul><li>(Contd….)<br /><ul><li>No workmen [Chapter VB]who has been employed for not less then 1 year can be retrenched until [Sec.25F]:
  27. 27. Has been given 3 months notice in written, indicating the reasons for retrenchment.
  28. 28. 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</li></li></ul><li>(Contd….)<br /><ul><li>Notice shall be given to appropriate government or such authority & the permission of such government or authority is obtained.
  29. 29. Government or authority after making inquiry may grant or refuse the permission to the employer within 3 months of the date of service of the notice.
  30. 30. if it does not communicate within 3 months of such notice then the retrenchment is legal.
  31. 31. if it does refuse the permission then the retrenchment is illegal.</li></li></ul><li>PENALTY FOR LAY-OFF & RETRENCHMENT <br />Any employer who contravenes the provisions of lay-off / retrenchment is punishable with imprisonment for a term which may extend to one month, or with fine which may extend to Rs.1000/- or both.<br />
  32. 32. CLOSURE<br /> “Closure" means the permanent closing down of a place of employment or part of establishment [Sec. 2(cc)]<br /><ul><li> Prohibitions</li></ul>No permission is required, in smaller establishments [Sec. 25(k)]<br />
  33. 33. (Contd….)<br />Where permission is required, application should be submitted (in the case of factories, mines and plantations) to the Govt. with copy to the union at least 90 days in advance. [Sec. 25O(1)]<br />If no reply is received within 60 days permission can be assumed [Sec.25O(3)]<br />
  34. 34. PENALTY<br /><ul><li>In case of not taking the prior permission or informing representative of workmen, imprisonment for a term which may extend to 6 month, or with fine which may extend to Rs. 5000, or with both.
  35. 35. In case of contravene of order, imprisonment for a term which may extend to 1 year, or with fine which may extend to Rs. 5000, or with both.</li></li></ul><li>UNFAIR LABOUR PRACTICES<br /><ul><li>ON THE PART OF EMPLOYERS
  36. 36. To interfere with, restrain from, or coerce, workmen in the exercise of their right to organize, form, join or assist a trade union or to engage in concerted activities for the purposes of collective bargaining or other mutual aid or protection.
  37. 37. To dominate, interfere with or contribute support, financial or otherwise, to any trade union.
  38. 38. To establish employer sponsored trade unions of workmen.</li></li></ul><li>(Contd….)<br /><ul><li>To encourage or discourage membership in any trade union by discriminating against any workman.
  39. 39. To discharge or dismiss workmen.
  40. 40. To abolish the work of a regular nature being done by workmen, and to give such work to contractors as a measure of breaking a strike.
  41. 41. To transfer a workman mala fide from one place to another, under the guise of following management policy.
  42. 42. To insist upon individual workmen, who are on a legal strike to sign a good conduct bond, as a precondition to allowing them to resume work.</li></li></ul><li>(Contd….)<br />To show favoritism or partiality to one set of workers regardless of merit.<br />To employ workmen as "badlis", casuals or temporaries and to continue them as such for years, with the object of depriving them of the status and privileges of permanent workmen.<br />To discharge or discriminate against any workman for filing charges or testifying against an employer in any enquiry or proceeding relating to any industrial dispute.<br />
  43. 43. (Contd….)<br />To recruit workman during a strike which is not an illegal strike.<br />Failure to implement award, settlement or agreement.<br />To indulge in acts of force or violence.<br />To refuse to bargain collectively, in good faith with the recognized trade unions.<br />Proposing or continuing a lock-out deemed to be illegal under this Act.<br />
  44. 44. (Contd….)<br /><ul><li>ON THE PART OF WORKMEN</li></ul>To advise or actively support or instigate any strike deemed to be illegal under this Act.<br />To coerce workmen in the exercise of their right to self-organization or to join a trade union or refrain from, joining any trade union.<br />For a recognized union to refuse to bargain collectively in good faith with the employer.<br />
  45. 45. (Contd….)<br />To indulge in coercive activities against certification of a bargaining representative.<br />To stage, encourage or instigate such forms of coercive actions as willful, "go-slow", squatting on the work premises after working hours or "gherao" of any of the members of the managerial or other staff.<br />To stage demonstrations at the residence of the employers or the managerial staff members.<br />
  46. 46. To incite or indulge in willful damage to employer’s property connected with the industry.<br />To indulge in acts of force or violence or to hold out threats of intimidation against any workman with a view to prevent him from attending work.<br />(Contd….)<br />
  47. 47. AUTHORITIES UNDER THIS ACT<br />Works committee<br />Conciliation officers<br />Board of conciliation<br />Courts of inquiry<br />Labour courts<br />Tribunals<br />National tribunals<br />
  48. 48. WORKS COMMITTEE<br />Where? : establishments with 100 or more workers [Sec.3(1) &(2)]<br />Members : Equal number of representatives of the Employer and Employees [Sec.3(1) & Rule 40]<br />Objective : promotion of good relationship between employer and employee(s)<br />
  49. 49. CONCILIATION OFFICERS<br /><ul><li>Appointed by appropriate Government
  50. 50. Nature : 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.
  51. 51. Duties :
  52. 52. When a strike/lockout notice is issued in a public utility service, he is bound to convene immediate conciliation meeting. [Sec.12(1) and Rule 9(1)]</li></li></ul><li>(Contd….)<br /><ul><li>If he succeeds in bringing out an understanding he gets the parties to sign a settlement in Form H (Rule 58(1)] and make necessary entries in the register in Form O and sent a copy to the Govt. [Sec.12(3) and Rules 58(1)(3) & 75]
  53. 53. If he fails to brings about a settlement, he has to bring the fact to the attention of the Govt. [Sec.12(4)]</li></li></ul><li><ul><li>Powers of conciliation officer: </li></ul>Enter and inspect [Sec 11(1)]<br />Summon any person as witness or compel the production of document [Sec.11(4) and Rule 17]<br />Grant/refuse to petition filed by employer on disciplinary matters during pendency of conciliation before him.<br />
  54. 54. BOARDS OF CONCILIATION<br />Appointed by the appropriate Govt. as occasion arises for settlement of disputes.<br />Board shall consist of an independent chairman and two or four members in equal numbers to represent the parties to the dispute.<br />The board can't work in the absence of the Chairmen or any member.<br />
  55. 55. COURTS OF INQUIRY<br />Appointed by the appropriate Govt. as occasion arises for settlement of disputes.<br />Board shall consist of an independent person or independent persons as the appropriate government may think fit. Where a court consists of two or more members, one of them shall be appointed as the Chairman.<br />The board can't work in the absence of the Chairmen or any member.<br />
  56. 56. LABOUR COURT <br />Constituted by the appropriate government for the adjudication of industrial disputes relating to any matter specified in the Second Schedule and for performing such other functions as may be assigned to them under this Act.<br />Consist of one person only with the required qualification to be appointed by the appropriate government<br />
  57. 57. THE SECOND SCHEDULE : Matters with in the Jurisdiction of labour Courts (Section 7)<br />The propriety or legality of an order passed by an employer under the standing orders<br />The application and interpretation of standing orders<br />Discharge or dismissal of workmen including reinstatement of, or grant of relief to, workmen wrongfully dismissed<br />Withdrawal of any customary concession or privilege<br />Illegality or otherwise of a strike or lock-out; and<br />All matters other than those specified in the Third Schedule.<br />
  58. 58. TRIBUNALS<br /><ul><li>Constituted by the appropriate government for the adjudication of industrial disputes relating to any matter specified in the Second Schedule or third schedule and for performing such other functions as may be assigned to them under this Act.
  59. 59. Consist of one person with the required qualification to be appointed by the appropriate government. If required, Govt. may appoint 2 persons as assessors to advice in Tribunal.</li></li></ul><li>THE THIRD SCHEDULE : Matters with in The Jurisdiction of Industrial Tribunals (Section 7A)<br />Wages, including the period and mode of payment<br />Compensatory and other allowances<br />Hours of work and rest intervals<br />Leave with wages and holidays<br />Bonus, profit sharing, provident fund and gratuity<br />
  60. 60. (Contd….)<br />Shift working otherwise than in accordance with standing orders<br />Classification by grades<br />Rules of discipline<br />Rationalization<br />Retrenchment of workmen and closure of establishment<br />Any other matter that may be prescribed.<br />
  61. 61. NATIONAL TRIBUNAL<br /><ul><li>Constitute by the Central Govt. for the adjudication of industrial disputes which 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.
  62. 62. Consist of one person with the required qualification to be appointed by the appropriate government. If required, Govt. may appoint 2 persons as assessors to advice in Tribunal.</li></li></ul><li>ARBITRATION<br />When conciliation fails, and if the parties wish to refer the issue for arbitration, both the sides shall sign an arbitration agreement in Form C under Rule 7 and send it to Govt. The Govt. will then appoint an arbitrator [Sec.10(2), 10A]<br />Arbitration award is implemented like an adjudication award.<br />
  63. 63. DUTIES OF ADJUDICATION MACHINERY<br />To complete the adjudication proceedings and submit the report within the time [Sec.15, 10(2)(a)]<br />To restrict the scope of their judgment to the point referred to them [Sec.10(4)]<br />
  64. 64. POWER OF ADJUDICATORS<br />They can enter any establishment for fact finding [Sec.11(2) and Rule 23]<br />Can enforce attendance of any person and production of documents [sec.11(3), rules 10A &10B]<br />Empowers to administer oath and issue summons to parties and witnesses [Rule 16,17,18]<br />
  65. 65. (Contd……)<br /><ul><li>Can appoint assessors to assistance [Sec.11(5), Rule 25]
  66. 66. Can pass orders awarding cost to the aggrieved party [sec.11(7)]
  67. 67. Review punishment and can reduce/substitute punishments [Sec. 11 (A)]
  68. 68. Can pass orders on money claim petitions filled by workmen against employers [Sec. 33(C)(2)]
  69. 69. Take decision on petitions filed under Sec.33.</li></li></ul><li>PENDENCY OF ADJUDICATION [Sec.20(2)(c),20(3) and 17]<br />Adjudication proceeding are deemed to commence on the date when the Govt. refers the dispute to the authorities under Sec. 10 or 10(A)<br />Adjudication proceeding are deemed to have concluded on the date on which their awards become enforceable.<br />
  70. 70. REPRESENTATION OF PARTIES<br />Advocates are prohibited from appearance. [Sec.36(3)]<br />However advocates can be permitted on mutual consent. [Sec.36(4)]<br />A co-worker, any union official can represent a workman [Sec.36(1)(a),(b),(c)]<br />Officer of an association of Employers. [Sec.36(2)(a),(b),(c)]<br />
  71. 71. BIBLIOGRAPHY<br />Indian Business Enviornment<br /> -T.R.Jain, MukeshTrehan & RanjuTrehan<br />www.advocatekhoj.com<br />www.vakilno1.com <br />
  72. 72. <ul><li>Presented By:</li></ul> JoelD’mello<br />RushikeshBasopiya<br />
  73. 73. QUESTIONS???<br />

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