Industrial disputes act, 1947

INDUSTRIAL DISPUTES ACT, 1947

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by
Manisha vaghela

vaghela_manisha13@yahoo.com BY: MANISHA VAGHELA

Flow of presentation

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 Definition
1. Industrial Disputes
2. Strikes
3. Industry
4. Retrenchment
5. Lock –out
6. lay Off
 All questions of Industrial Disputes 1947

 Bibliography

BY: MANISHA VAGHELA vaghela_manisha13@yahoo.com

Industrial Disputes
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 “Industrial dispute” is defined by Section 2(k) of the

industrial disputes Act, 1947 as, “any dispute or difference
between employers and employers, or between employers
and workmen, or between workman and workmen, which
is connected with the employment or non employment or
the terms of employment or with the conditions of labour,
of any person.


Strikes
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 Industrial Disputes Act,1947,deals with this type
separately in section 2(q) and defines it as “strike means a
cessation of work by a body of persons employed in any
industry acting in combination, or a concerted refusal
under a common understanding of any number of persons
who are or have been so employed to continue to work or
to accept employment.”


Industry
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 Accordingly, section 2(j), an activity would become an industry if (a) it is

systematic,(b) it involves co-operation between the employees and the

employer, (c) it results in the production and/or distribution of goods or

services, and (d) is carried on as trade or business, regardless of whether it

is trade or business, for profit or not. If these tests are satisfied the term

industry would include educational institutions, university, hospitals,

societies, charitable institutions, a firm of lawyers and chartered

accountants, municipality, etc.


Retrenchment
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 According to The term "retrenchment" defines under the

section 2(00) may be analyzed as:

(1) Retrenchment means the termination by the employer
of the services of a workman.

(2) The termination may be for any reason what so ever.

(3) But the termination should not be as a measure. of
punishment byway of disciplinary action.


Lock -out
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 In section 2(I) Lock out Means the closing of a place of

employment, or the Suspension of work, or the refusal
by an employer to continue to employ any number of
persons employed by him.


lay Off
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 In section 2(kk) lay Off Means putting aside workmen temporarily. The duration of

lay off should not be for a period longer than the period of emergency. The
employer-employee relationship does not come to an end during the period of lay-
off but is merely suspended during the period of emergency.

 Any such refusal or failure to employ a workman may be on account of:

 (I) shortage of coal, power or raw materials or

 (ii) the accumulation of stock; or

 (iii) the breakdown of machinery; or

 (iv) natural calamity; or

 (v) any other connected reasons.

Appropriate Government
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 In section 2 ( a) The Central Government as well as the State
Government are vested with various powers and duties in relation to
matters dealt with in this Act. In relation to some industrial disputes the
Central Government and in relation to some others, the State
Government concerned are the appropriate Government to deal with
such disputes.

 Under sub-section [(i) (a)] and [(i)(b)] of the Act,
Companies/Corporations/Trusts/Boards/ Authorities, etc. established
under the Act of Parliament; the Central Government is the Appropriate
Authority.


Q :-State and explain the various authorities appointed under the industry disputes act to solve industrial
disputes.
OR

Q:-What is the machinery setup in Industrial disputes Act 1947 for settlement of disputes?
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 The authorities that make use of conciliation on the sole method of
settlement of disputes are:
 (1) Works Committee
 (2) Conciliation Officer
 (3) Board of Conciliation
The adjudicating authorities that decide any dispute under the Act. are:
 (1) Court of Inquiry
 (2) The Labour Court
 (3) Industrial Tribunal;
 (4) National Tribunal, and


 Sec. 10-A of the Act. makes provision for voluntary reference of disputes
to arbitration. Apart from the above, provision has also been made for
constitution of Court of Inquiry, whose main function is inquire into any
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matter appearing to be connected with or relevant to an industrial dispute.

1. Work committee (Sec.3)
The works committee is considered to be powerful social institution
only to secure cooperation between workers and employers, but to make
the will of the employees effective on the management. According to
sec.3 of the Industrial Disputes Act, in the case of an industrial
establishment in which 100 or more workmen are employed or have
been employed on any day in the preceding 12 months, the appropriate
Government may, by general or special order, require the employer to
constitute a Works committee consisting of representatives of employers
and workmen engaged in the establishment. The number of
representatives of workmen on Works Committee shall be not being less
than that of the representatives of the employers.

2. Conciliation Officers (Sec.4)
The appropriate government may appoint conciliation officers
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charged with the duty of mediating in and promoting the settlement of,
industrial disputes. A conciliation officer may be appointed for a
specified area or for a specified industry in a specified area, and his
appointment may be permanent or temporary.

3. Board of Conciliation (Sec.5)
In a similar manner, a board of conciliation may also be constituted to
promote the settlement of industrial disputes. A board shall consist of a
chairman and two or four other members, as the appropriate government
thinks fit. The chairman shall be an independent person and the other
member shall be person appointed in equal numbers to represent the
parties to the dispute on the recommendation of the parties concerned. If
any party fails to make a recommendation within the prescribed time,
the appropriate government shall appoint such persons as it thinks fit to
represent that party.

4. Courts of Inquiry (Sec.6)
The appropriate government may constitute a court of inquiry consisting
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of one or more independent persons to enquire into any matter connected
with or relevant to an industrial disputes. Where a court consists of two or
more members, one of them shall be appointed as chairman.
5. Labour courts (sec-7)
The appropriate government may constitute one or more labour courts to
adjudicate industrial disputes relating to any of the following matters
1]. The propriety or legality of an order passed by an employer under the
standing orders;
2].the application and interpretation of standing orders;
3]. Discharge or dismissal of workmen, including retirement of, or grant of
relief to, workmen wrongfully dismissed;
4].withdrawal of any customary concession or privilege;


5]. Illegality or any customary concession or privilege;
6].All matters other than those specified in the third schedule.
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A labour court shall consist of one person only with necessary judicial
qualifications, and will be appointed by the appropriate government.
6. Industrial Tribunals (sec.7A)
 The appropriate Government may by notification in the Official Gazette,
constitute one or more industrial tribunals for the adjudication of industrial
dispute s relating to any matters specified above as in the case of Labour
Court, or the following
matters, namely-
(1) Wages including the period and mode of payment
(2) Compensatory and other allowances;
(3) Hours of work and rest intervals;
(4) Leave with wages and holidays;
(5) Bonus, profit sharing, provident fund and gratuity;
(6) Shift working otherwise than in accordance with standing orders;
(7) MANISHA VAGHELA by grades;
BY: Classification vaghela_manisha13@yahoo.com

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(8) Rules of discipline;
(9) Rationalization;
(10) Retrenchment of workmen and closure of establishment; and
(11) Any other matter that may be prescribed.

7. National tribunals ( sec. 7B)
 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 the Central Government 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.

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 A National Tribunal shall consist of one person only to be appointed
by the Central Government. In order to be qualified as a Presiding
Officer of a National Tribunal, a person must be or must have been a
Judge of a High Court, or must have held the office of the Chairman
or any other member of the Labour Appellate Tribunal for at least 2
years. The Central Government may appoint two assessors to advise
the National Tribunal, in proceeding before it. .


Q:-Explain provision of illegal strikes and illegal
lockout as stated in Industrial disputes Act 1947.
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 Sec. 24 of the Act provides that a strike or a lockout shall be illegal if it
is:
(a) commenced or declared in contravention of Sec. 22 or 23, and
(b) continued in contravention of the prohibitory order made by
appropriate Government after the dispute has been referred under Sec.
10(3) or sub-section 10A(4-A).

 Prohibition of financial aid to illegal strikes and lockouts (Sec. 25)
This section of the Act prohibits financial aid to illegal. strikes and
lockouts.
This section has the following ingredients: .
(1) spending or applying money:
(2) money spent or applied in direct furtherance or support of an illegal
strike,


 Punishments (Sec. 28)

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For any violation of provisions of Sec. 25, punishment is imposed by
Sec. 28 of the Act. According to the provision, even a person who
is not a workmen can be penalized violating the provisions of Sec.
25. The effect of Sections 25 and 28 is the prosecution to support a
conviction for breach of Sec.25 must prove that:
(i) the strike or lock-out in question was illegal
(ii) the accused had knowledge that-
(a) the strike or lockout was iIIegal and
(b) the money spent or applied by him was in direct
furtherance or support of a strike or lockout.
(iii) that the money was actually spent or applied by the accused.
However, assistance to strikers in any other from, for
example, supplying clothes, food, etc. is not prohibited under Sec.
25 of the Act.

Q:-Briefly explain strike and lockout in public utility
services.
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Sec.22 of the Industrial Disputes Act provides that:

(1) No person employed in a public utility service go on strike in breach of

contract:

(a) without giving notice of strike to the employer within six weeks before

striking, or

(b) within 14 days of giving notice, or

(c)before the expiry of the date of strike specified in any such notice as

aforesaid, or

(d) during the pendency of any conciliation proceedings and 7 days after the
BY: MANISHA VAGHELA
conclusion of such proceedings. vaghela_manisha13@yahoo.com

(2) No employer on any public utility service shall lockout any of his
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workmen

(a) without giving them notice of lock-out as herein after provided within six
weeks before locking out; or

(b) within 14 days of giving such notice; or

(c) before the expiry of the date of lockout specified in any such notice as
aforesaid; or

(d) during the pendency of any conciliation proceeding before Conciliation
Officer and seven days after the conclusion of such proceedings.


Difference between lock-out and retrenchment

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(1)Temporary or permanent: Lockout is temporary measure, while
retrenchment is permanent.

(2) Relationship: In lockout the relationship of employer and employee is only
suspended; it does not come to an end. In retrenchment such a relationship is
severed at the instance of the employer.

(3) Motive: Lockout is with a motive to coerce the workmen; the intention of
retrenchment is to dispense with surplus labour.

(4) Trade dispute: Lockout is due to an industrial dispute, whereas in case of
retrenchment, there is no such dispute


Difference between strike and lock-out
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Strike is the „act of quitting work done by mutual understanding by
a body of workmen as a means of enforcing compliance with
demands made on their employer, a stopping of work by
workmen in order to obtain or resist a change in conditions of
employment‟.
Lock-out is temporary suspension by employer to give
employment to the workmen, unless the workmen accept the
demands of the employer.


Bibliography
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 Industrial & labour laws
- Dr. sanjeev kumar

 Industrial jurisprudence and labour legislation
- A.M.sarma

 Legal systems in business
- P. Saravanavel
- S. Sumathi

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Industrial disputes act, 1947

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