The document discusses employee relations and industrial disputes in India. It defines employee relations as the relationship between workers and employers. It also discusses key concepts like collective bargaining, trade unions, employment law, and the importance of good employee relations for motivation, reputation, output, efficiency and profits. The document outlines the Trade Union Act of 1926 and provisions regulating trade union registration and activities. It also describes the objectives, features and controversies around the Industrial Disputes Act of 1947, which aims to prevent strikes and lockouts and establish authorities to resolve industrial disputes in India.

1. Employee Relations
Employee and Employer Relations describes the relationship between workers and
employers in business.
Different approaches to employee relations
• Collective bargaining
• Individual bargaining
• Employee participation and industrial democracy
• Role of trade unions and ACAS
• Principals of employment law

2. Importance/Scope of IR
• Motivation
• Reputation of Potential customers, investor and staff
• Output
• Efficiency
• Profit levels

3. Trade Unions
According to V.V. Giri, “Trade Unions are voluntary organisations (associations) of workers
formed to promote and protect their interests by collective action”.
Functions of Trade Unions (According to National Commission on Labour):
• To secure for workers fair wages;
• To safeguard security of tenure and improve conditions of service;
• To improve opportunities for promotion and training;
• To provide for educational, cultural and recreational facilities;
• To co-operate in and facilitate technological advance by broadening the understanding of
workers;
• To promote interests of workers in their industries;
• To promote production and productivity, discipline and high standards of quality;
• To promote individual and collective welfare.

4. Trade Union Act 1926.
This is an Act to provide for the registration of Trade Unions and in certain respects to
define the law relating to registered Trade Unions.
Objectives – To lay down the procedure for registration of Trade Unions, defining their
rights and liabilities, regulating their activities, and making them more purposeful for the
society.
The Act extends to the whole of India.

5. Provisions of the Trade Union Act, 1926
Section 3: Appointment of Registrars -
The appropriate Government is empowered to appoint a Registrar of Trade Unions for each State. It may also
appoint Additional and Deputy Registrars of Trade Unions.
Section 4: Mode of Registration -
Any seven or more members of a Trade Union may apply for registration of the Trade Union under this Act: by
subscribing their names to the rules of the Trade Union; and by complying with the provisions of this Act with
respect to registration.
Section 5: Application for registration
Application for registration of a Trade Union shall be made to the Registrar and shall be accompanied by:
A copy of the rules of the Trade Union; Statement of the following particulars:-
The names, occupations and addresses of the members making the application.
The name of the Trade Union and the address of its head office.
Where a Trade Union has been in existence for more than one year before the making of an application for its
registration it needs to submit a statement of the assets and liabilities held by it.

6. Industrial Dispute Act 1947
IDA is the act that conducts labour regulations for all workers working on the Indian
mainland. This Act came into effect on 1947 April 1.
The Industrial Dispute Act of 1947 regulates Indian labour law that concerns trade unions as
well as individuals working in any industry in India.
The Industrial Dispute Act 1947 mainly deals with the provisions for the investigation and
settlement of industrial disputes. It extends to the whole of India.
The causes of industrial disputes include disparity in wages, disputes between the labour
Union and the Industry, unfulfillment or disregard of the rights of the labour, etc.

7. Objectives of Industrial Dispute Act 1947
The Industrial Disputes Act 1947 aims to maintain peace and harmony in the workplace by
setting up a system and process for the investigation and negotiation of labour disputes.
1.One of the objectives of Industrial Disputes Act 1947 is to promote positive interactions
between labour and business and to give adjudication authorities a means of mediating disputes.
2. To establish a committee for resolving disputes between business and labour, with the option
of having a registered trade union or an employer association represent it.
3. Industrial Disputes Act 1947 prevents unapproved lockouts and strikes.
4. Speak with workers who have been let go, fired unfairly, etc.

8. Features of Industrial Dispute Act 1947
1- According to Section 2(aaa) of this Industrial Dispute Act 1947,
average pay means the average of the wages of:
•Three complete calendar months in case of monthly paid
•Four complete weeks, in case of the weekly paid workman.
•Twelve full working days, in case of the daily paid workman.
2- Industrial dispute (Section 2(k)) of the Industrial Dispute Act 1947 means
any dispute which is connected with the employment or non-employment or the
conditions of labour between
•Employers and employers.
•Employers and workmen.
•Workmen and workmen.

9. 3- If an employer fails to give employment to a workman on the following grounds, then it is referred to as Lay-off
(Section 2(kkk))of Industrial Dispute Act 1947:
•Shortage of coal or power or raw materials
•Accumulation of stocks or
•Break-down of machinery
•Natural calamity or for any other connected reason.
4- Lock-out (Section 2(l)) of Industrial Dispute Act 1947 refers to the
•Temporary closing of working place.
•Suspension of work.
•Condition in which the employer refuses to continue the employment of persons.
5) Retrenchment (Section 2(oo)) of the Industrial Dispute Act 1947 means the termination of a workman of the
service by the employer for any reason. It does not include the following:
•Voluntary retirement.
•Retirement at the age of superannuation.
•Non-renewal of the employment contract.
•Continued illness.

10. 6) Labour courts (Section 7) and Tribunals (Section 7A) of the Industrial Dispute Act 1947 shall consist of only one
person appointed by the appropriate government. The following are the common qualifications for a presiding officer
of a labour court or a tribunal:
• Judge of a High Court or
• The district judge or an additional district judge for a period of not less than three years or
• Deputy Chief Labour Commissioner (Central) or Joint Commissioner of the State Labour Department, having a
law degree and at least seven years experience in the labour department, including three years of experience as a
Conciliation Officer or
• Grade III officer of Indian Legal Service with three years of experience.
• Apart from the above, any person with the following qualifications can also be appointed as the presiding officer:
7) A National Tribunal (Section 7B) of the Industrial Dispute Act 1947 constituted by the central government shall
consist of only one person. The presiding officer of the tribunal must be a person who worked or has been a judge of a
high court.

11. Punishment Under Industrial Dispute Act 1947
Any person committing any unfair labour practice shall be punishable with a maximum imprisonment of
six months or a maximum fine of one thousand rupees or both under the Industrial Dispute Act 1947.
•Any workman who commences or continues an illegal strike shall be punishable with a maximum
imprisonment of one month, or with a maximum fine of fifty rupees, or both.
•Any employer who commences or continues an illegal lock-out shall be punishable with a maximum
imprisonment of one month, or with a maximum fine of one thousand rupees, or both under the Industrial
Dispute Act 1947.
•Any person who gives financial aid or instigates or incites others, or takes part in an illegal strike or lock-
out shall be punishable with a maximum imprisonment of six months or with a maximum fine of one
thousand rupees or both.
•Any person who commits a breach of any term of any settlement or award shall be punishable with a
maximum imprisonment of six months, or fine, or both under Industrial Dispute Act 1947.

12. Controversy Around the Industrial Disputes Act, 1947
The Industrial Dispute Act of 1947 was brought into force for the investigation and settlement of industrial disputes,
and it was applicable to all, irrespective of size and sector. Industrial Dispute Act had provisions regarding the
conditions for layoffs and closure of Industry.
•If an industrial establishment employs more than fifty workers, then it needs to give a notice period of 60 days with
the reasons for closure to the appropriate government before the closure. This was again increased to 90 days in
1982.
•If it has more than 300 employees, it needs to take prior approval from the government authority for the approval of
layoffs, closure, and retrenchment. The limit was again increased to 90 days in 1982.
The main purpose of this provision is to make sure that the employers can’t hire or dire any employee whenever it
wants. For such action, it needs approval from the labour commissioner. This has led to various problems in the
labour industry, such as
•Lower output by labour
•Lower investments
•Lower productivity
•Hesitation in hiring
•Lower overall manufacturing performance
•Foreign investors are deterred from investing in India.

13. Authorities
There are various authorities under the act such as the
1) Works committee - the works committee will have equal representations from both the
employer and the employee. it is to try to settle the dispute in the first instance through the
process of mediation in the initial stage of the dispute.
2) Conciliation officer - the central government, state government or the local authority will
appoint such number of persons to be the conciliation officer.
How many sections are there in the Industrial Disputes Act, 1947?
Ans. There are 40 sections in the Industrial Disputes Act, 1947.

14. 3) conciliation board - The board of conciliation s constituted in order to promote the settlement
of industrial dispute.
The board appointed consists of the chairman and two or four other members. under the board the
chairman is the independent person and the other persons appointed in equal numbers which
represents the parties in disputes and the person who represents the party shall be appointed by the
party .
4) courts of inquiry - the court of inquiry to be run by the independent person or persons as the
appropriate government thinks fit. where the court consists of two or more persons then any one
of them shall be appointed to be chairman.
5) labour court - it consists of one person to be appointed by the appropriate government. the
qualifications of the presiding officer of the court shall be as follows:-
a) if he is or has been a judge of the high court
b) he has for a period of not less than 3 years being a district judge or an additional district judge

15. 6) Tribunal - consist of one person who shall be appointed by appropriate government.
The qualifications of the presiding officer of the tribunal are as follows:-
a) he/she is, or has been, a Judge of a High Court;
b) he/she has, for a period of not less than three years, been a District Judge or an Additional
District Judge
7) National tribunal - appointed by the central government constitute one or more national tribunal
for the adjudication of industrial disputes which in the opinion of the central government involves
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.