Objectives
The main objective of the Industrial Disputes Act, 1947 is to provide niachinery for investigation and settlement of industrial disputes ,and matters connected therewith to ensure speedier resolution of industrial disputes and to create harmony and amity in Ule industry.
Scope and Coverage
The Act came into force on 1st April, 1947 and at present extends to whole of India covering all type of industries including factories, mines, pl,mtations, commercial and industrial establishments irrespective of number of pcople employed therein.Although by Section 2(c) of the Amending Act 46 of 1982, Section 2Q) of the Industrial Disputes Act which defines the "industry" had been aineiided but the amendment has not yet been brought into force even after a lapse of more than 1h years, as a result of which the old definition continues covering all kinds of activities which are carried on a systematic basis with the co-operation of workmen.
Administration
The app~opriate government in respect of central' Govermnent Undertakings which have been created under the Act of Parliament, bahking or insurance comnpany,mines, oil fields, cantonment board, major ports, is the Central Government and in Labour Legislation relation to any other industry, it is the State Government which is responsible for administration and providing machinery for resolution of industrial disputes. The responsibility of the appropriate government includes appointment of Conciliation Officers, appointing the Presiding Officer of Labour Court and Industrial Tribunal,reference of the industrial disputes, publication of awards, etc.
Important Definitions
Some of the most important definitions as per the Act are as under :
Section (2j):"Industry" means any business, trade, undertaking,manufacture or calling of e~nployers and includes any calling, service, employment, handicraft, or industrial occupation or avocation of workmen.
Section 2(k) : "Industrial Dispute" means any dispute or difference between enlployers and employers, or between employers and workmen, or between workmen and workmen which is connected with the en~ployment or non-employment or the term of enlployment or with the conditions of labour,of any person.
Section 2(1): "Lockout" niearis the temporary closure of a place of employment or the suspensirm of work, or tlie refusal by an employer to continue to employ any number of persons employed by him.
Section 2(00): "Retrenchment" means termination of service by tlre employer of a workman for any reason whatsoever,otherwise than as a punishnient inflicted by way of disciplinary action. It does not include voluntary retirement, superannuation, ternlination of service as a result of non-renewal of contract of eniploymenl or termination on grounds of ill-health.
Section 2(q) : "Strike" meals a cessation nf work by a body of persons employed in any industry acting in combination or a concerted refusal, or a refusal under a comnon understanding, of any number of persons who are or have been so employed to continue to work or to accept enlplo yment.
Section 2(s) : "Workman" nleans any person including a trainee employed in any industry to do any illa~lual, unskilled, skilled, technical, operational, clerical or supervisory work for hire c)r reward, whether the term of employment be express or implied, and for the purposes of any proceeding under this Act in relation to an industria! dispute, includes any such person wlio has been dismissed, discharged, or retrenched in connection with,or as a consequence of that dispute. or whose dismissal, discharge or retrenchment has led to tlie dispute, but does not include any sudh person wlio is employed in Police or Armed Forces or who is enlployed mainly in.nlariageria1 or adnlir~istrative capacity or wlio being employed in supervisory capacity, draws wages exceeding Rs. 1,600 per month or exercises either by nature of the duties attached to the office or by reason of the power vested in him, functions mainly of a lllariagerial nature.
Machinery for Investigation and Settlement of Disputes
The Act provides following machinery for iilvestigation ant1 settlement of industrial disputes :
Works Committee
Any industry, which has 100 or rnore workmen (in case of some states 50 or more) is equired to constitute works committee which will have work~nen's representatives and mployer's representatives in equal number with total number of nlenlbers not exceeding twenty. It is the duty of the works colrirnittee to promote measures for securing and preserving amity and good relations between employer and workmen and comment upon matters of common interest and endeavour to compose any material difference of opinion in respect of such matters.
Conciliation Officers
A conciliation officer may be appointed by the appropriate government for specified industries or in a specified area either permanently or for a limited period. The conciliation office either of his own or as and when any difference of opinion is brought to his notice, holds discussioll with both tlie parties and acts as a mediator to resolve the differences between them.
Boards of Conciliation
under Section 5 of the Act, appropriate government may constitute a board of conciliation as and when the occasion may arise by notification in the official gazette for promoting the settlement of an industrial dispute. The board shall consisl of a chairman and two or four members as the government may decide. While chairman shall be an independent person and members in equal number
shall represent the parties, to the dispute on their reconlmendation of thc concerned partics.
Courts of Enquiry
The appropriate govemmcnt may constitute a Court of enquiry by notification in the official gazette as and when the'occasion arises for enquiry into any matter appearing to be connected with or relevant to an industrial dispute. The court may consist of number of independent persons as the government may think fit. Where the court consists of two or more persons, one of them shall be appointed as the chairman.
Labour Courts
The appropriate govenlmcnt's notification in the official gazette constitutes onc or more labour courts for adjudication of industrial dispute to matters as specified in second schedule of the Act (issues relating to condition of work or discharge or disnlissal, etc.) or any other function assigned to them. The labour court consists of one person only who will be known as Presiding Officer and will be appointed by the appropriate government. A person shall not be qualified for appointment as a Presiding Officer of a labour court unless be has been a Judge of High Court or a District Judge or Additional District Judge for a period of not less than 3 ycars or has held any Judicial Office in India for not less than 7 years.
Industrial Tribunals
The appropriate governmnent 's notification in the official gazette constitutes of onc or Inore Industrial Tribunal for the adjudication of industrial dispute relating to ;my matler whether specified in second schedule or third schedule (issues relating to monitory benefit and discipline, ctc.) or any other furlction assigned Lo them under the Act.. Like Labour Court, Uie Industrial Tribunal also consists of onc pcrson only who is known as Presiding (Ilfficer and is appointed by the govenlment. A person shall not be qualified for the appointment as Presiding Officer of the Tribunal unless he has been a Judge of Higll Court or District Judge or Additional District Judgc for a period of not less than 3 years.
National Indistrial Tribunal
The Central Governnient may by notification in tlie official gazette constitute one ( g more National Industrial Tribunal for adjudication of industrial dispute wliicll in its opinion involves question of national importance or are of such nature that industrial establishment situated ul nmore than one state are likely to be interested or affected by such disputes. Tlle Natioiial Industrial Tribunal sllall consists of one pcrson only and will be appointed by the Central Government. He shall be designated as Presiding Officer. A person shall not be qualified for appointmenl as Presiding Officer of thc National Industrial Tribunal unless he has been a Judge of High Court.
Notice of Change
No enlployer shall propose to effect any change in the condition of service of any worklnan in respect of any matter specified in fourth schedule unless he has given rniniinurri 21 days notice in the prescribed manner. However, no notice shall he Labour Legislation required for effecting any change if it is brought in pursuance of any settle~nent or award or where the workmen are governed by civil services rules or any such rule applicable to the armed forces or such allied categories.
Reference of Dispute to Boards, Courts or Tribunals
If the appropriate government is of the opinion that any dispute exists or is apprehended, it may by order in writing refer the dispute to a Board for settlement or to a Labour Court, if it relates to any matter specified in second schedule or third schedule to a Trihunal for adjudication. In case of receipt of a notice of strike from a public utility industry, the appropriate governinent rnay refer the dispute to a Labour Court or Tribunal irrespective of the fact whether any other proceedingunder the Act may have commenced. The Central Government may refer a dispute in an industry for which the appropriate governrneilt is Central Government to a Labour Court or Tribunal constituted by the State Government.
Voluntary Reference of Disputes to Arbitration
The employer and the workinen lnay agree to refer the dispute to Arbitration by an agreement any time before the dispute has been referred to a Labour Court or Tribunal or National Trihunal .Power of Labour Court, Tribunal & National Tribunal to Give Appropriate Relief in Case of Discharge or Dismissal of Workmen. Whenever ruly industrial dispute relating to discharge or dismissal of a workman is referred to Labour Court, Tribunal or National Tribunal for adjudication and if it is satisfied with the order of discharge or dislnissal was not justified, it may set aside the order of discharge or dismissal and direct the reinstatement of the workman or grant such relief as it may consider necessary.
General Provisions of the Act
Following are some imnportant provisions of lndustrial Disputes Act, 1947 :
(a) Works Conunittee, Conciliation Officer, Boards of Conciliation and Court of Enquiry are meant to bring voluntary settlement of dispute through discussion arid mediation. Their recommendations and findings are not legally enforceable whereas the finding of Labour Court, Tribunal is in the form of Award which is legally ellforceable. (.In receipt of award, the appropriate government has to publish it in the ofticia1 gazette within a period of 30 days and it becomes enforceable on expiry of 30 days from the date of publication.
(b) If the employer prefers to go in appeal against the Award directing reinstatement of any worker in High Court or Supreme Court, it shall have to pay full wages last drawn by the workman during the pendency of such an appeal provided during this period, he is not employed elsewhere.
(c) There is a prohibition on strike and lockout in public utility services until or unless 14 days notice is given to the other party and observe strikellockout within six weeks thereof or before the scheduled date of strikenockout as mentioned in the notice or during the pendency of conciliation proceeding and seven days after conclusion of proceeding.
(d) In case of lay off or retrenchment of workmen or closure or transfer of undertaking, the workmen are entitled for payment of compensation as per the provisions of the Act.
(e) During the pendency of a dispute before Conciliation Ofticer or Board or Arbitrator or Labour Court or Trihunal or National Tribunal, 110 employer shall prejudicially alter the condition of service or discharge or dismiss in regard to any matter connected with the dispute of any workmen except with prior permission in writing from the authority before which the proceeding is pending. However, employer can alter the condition of service or discharge or disnliss the workmen in accordance to the Standing C)rders in accordance with implied or expressed terms c.)f contract of employa~ent in relation to any month notice or salary in lieu thereof and by filing an applicatio~l for approval of his action before the authority before which the dispute is pending.
(f)The elnployer and the workmen can be represented by any of the office bearer of their Associatio~flrade U ~ i i o of
~ l which they are ~ileinber or office bearer of the Federation of Associations/Trade Unions, in any proceeding under the Act.I
No party to a dispute shall be entitled to be represented by legal practitioner in any conciliation proceeding or in any proceeding before a court. However, in proceeding before a Labour Court, Tribunal or National Tribunal, a party to a dispute may be represented by a legal practitio~~er with the consent of the other party and with the leave of the concemedCwrt.
Obligations of the Employer
It is obligatory for an employer to fulfil the following :
(a) to constitute Works Committee and provide facility of its proper function;
(b) to implement all agreements, settlements and awards;
(c) to assist Conciliation Officer, Board, Arbitrator, Labour Court, Tribunal and National Tribunal in performing their functions by rendering necessary infornution and documents;
(d) to pay compensation as per the provisions of the Act in case of lay off, retrenchment or closure and to follow the prescribed procedure for the same;
(e) not to indulge in any unfair labour practice as prescribed under fifth schedule attached with the Act; and
(f) to abide by various provisions of the Act in fulfillment of its responsibility.
Obligations of the Workmen
Every workman is entitled to the following rights under the Act :
(a) to abide by the provisions of the agreements, settlements and awards;
(b) not to adopt any unfair labour practice as enurrlerated in fifth schedule attached with the Act;
(c) to co-operate with management in the effective functioning of Works Committee; and
(d) to assist Conciliation Officer, Board, Arbitrator, Labour Court, Tribunal 'and National Tribunal by furnishing necessary information and documents.
Offences and Penalties
The Act provides varying penalties for different offences with imprisonment ranging from one month to one year and fine ranging from Rs. 100 to Rs. 5,000 or both for contravening the various provisions of the Act.
The main objective of the Industrial Disputes Act, 1947 is to provide niachinery for investigation and settlement of industrial disputes ,and matters connected therewith to ensure speedier resolution of industrial disputes and to create harmony and amity in Ule industry.
Scope and Coverage
The Act came into force on 1st April, 1947 and at present extends to whole of India covering all type of industries including factories, mines, pl,mtations, commercial and industrial establishments irrespective of number of pcople employed therein.Although by Section 2(c) of the Amending Act 46 of 1982, Section 2Q) of the Industrial Disputes Act which defines the "industry" had been aineiided but the amendment has not yet been brought into force even after a lapse of more than 1h years, as a result of which the old definition continues covering all kinds of activities which are carried on a systematic basis with the co-operation of workmen.
Administration
The app~opriate government in respect of central' Govermnent Undertakings which have been created under the Act of Parliament, bahking or insurance comnpany,mines, oil fields, cantonment board, major ports, is the Central Government and in Labour Legislation relation to any other industry, it is the State Government which is responsible for administration and providing machinery for resolution of industrial disputes. The responsibility of the appropriate government includes appointment of Conciliation Officers, appointing the Presiding Officer of Labour Court and Industrial Tribunal,reference of the industrial disputes, publication of awards, etc.
Important Definitions
Some of the most important definitions as per the Act are as under :
Section (2j):"Industry" means any business, trade, undertaking,manufacture or calling of e~nployers and includes any calling, service, employment, handicraft, or industrial occupation or avocation of workmen.
Section 2(k) : "Industrial Dispute" means any dispute or difference between enlployers and employers, or between employers and workmen, or between workmen and workmen which is connected with the en~ployment or non-employment or the term of enlployment or with the conditions of labour,of any person.
Section 2(1): "Lockout" niearis the temporary closure of a place of employment or the suspensirm of work, or tlie refusal by an employer to continue to employ any number of persons employed by him.
Section 2(00): "Retrenchment" means termination of service by tlre employer of a workman for any reason whatsoever,otherwise than as a punishnient inflicted by way of disciplinary action. It does not include voluntary retirement, superannuation, ternlination of service as a result of non-renewal of contract of eniploymenl or termination on grounds of ill-health.
Section 2(q) : "Strike" meals a cessation nf work by a body of persons employed in any industry acting in combination or a concerted refusal, or a refusal under a comnon understanding, of any number of persons who are or have been so employed to continue to work or to accept enlplo yment.
Section 2(s) : "Workman" nleans any person including a trainee employed in any industry to do any illa~lual, unskilled, skilled, technical, operational, clerical or supervisory work for hire c)r reward, whether the term of employment be express or implied, and for the purposes of any proceeding under this Act in relation to an industria! dispute, includes any such person wlio has been dismissed, discharged, or retrenched in connection with,or as a consequence of that dispute. or whose dismissal, discharge or retrenchment has led to tlie dispute, but does not include any sudh person wlio is employed in Police or Armed Forces or who is enlployed mainly in.nlariageria1 or adnlir~istrative capacity or wlio being employed in supervisory capacity, draws wages exceeding Rs. 1,600 per month or exercises either by nature of the duties attached to the office or by reason of the power vested in him, functions mainly of a lllariagerial nature.
Machinery for Investigation and Settlement of Disputes
The Act provides following machinery for iilvestigation ant1 settlement of industrial disputes :
Works Committee
Any industry, which has 100 or rnore workmen (in case of some states 50 or more) is equired to constitute works committee which will have work~nen's representatives and mployer's representatives in equal number with total number of nlenlbers not exceeding twenty. It is the duty of the works colrirnittee to promote measures for securing and preserving amity and good relations between employer and workmen and comment upon matters of common interest and endeavour to compose any material difference of opinion in respect of such matters.
Conciliation Officers
A conciliation officer may be appointed by the appropriate government for specified industries or in a specified area either permanently or for a limited period. The conciliation office either of his own or as and when any difference of opinion is brought to his notice, holds discussioll with both tlie parties and acts as a mediator to resolve the differences between them.
Boards of Conciliation
under Section 5 of the Act, appropriate government may constitute a board of conciliation as and when the occasion may arise by notification in the official gazette for promoting the settlement of an industrial dispute. The board shall consisl of a chairman and two or four members as the government may decide. While chairman shall be an independent person and members in equal number
shall represent the parties, to the dispute on their reconlmendation of thc concerned partics.
Courts of Enquiry
The appropriate govemmcnt may constitute a Court of enquiry by notification in the official gazette as and when the'occasion arises for enquiry into any matter appearing to be connected with or relevant to an industrial dispute. The court may consist of number of independent persons as the government may think fit. Where the court consists of two or more persons, one of them shall be appointed as the chairman.
Labour Courts
The appropriate govenlmcnt's notification in the official gazette constitutes onc or more labour courts for adjudication of industrial dispute to matters as specified in second schedule of the Act (issues relating to condition of work or discharge or disnlissal, etc.) or any other function assigned to them. The labour court consists of one person only who will be known as Presiding Officer and will be appointed by the appropriate government. A person shall not be qualified for appointment as a Presiding Officer of a labour court unless be has been a Judge of High Court or a District Judge or Additional District Judge for a period of not less than 3 ycars or has held any Judicial Office in India for not less than 7 years.
Industrial Tribunals
The appropriate governmnent 's notification in the official gazette constitutes of onc or Inore Industrial Tribunal for the adjudication of industrial dispute relating to ;my matler whether specified in second schedule or third schedule (issues relating to monitory benefit and discipline, ctc.) or any other furlction assigned Lo them under the Act.. Like Labour Court, Uie Industrial Tribunal also consists of onc pcrson only who is known as Presiding (Ilfficer and is appointed by the govenlment. A person shall not be qualified for the appointment as Presiding Officer of the Tribunal unless he has been a Judge of Higll Court or District Judge or Additional District Judgc for a period of not less than 3 years.
National Indistrial Tribunal
The Central Governnient may by notification in tlie official gazette constitute one ( g more National Industrial Tribunal for adjudication of industrial dispute wliicll in its opinion involves question of national importance or are of such nature that industrial establishment situated ul nmore than one state are likely to be interested or affected by such disputes. Tlle Natioiial Industrial Tribunal sllall consists of one pcrson only and will be appointed by the Central Government. He shall be designated as Presiding Officer. A person shall not be qualified for appointmenl as Presiding Officer of thc National Industrial Tribunal unless he has been a Judge of High Court.
Notice of Change
No enlployer shall propose to effect any change in the condition of service of any worklnan in respect of any matter specified in fourth schedule unless he has given rniniinurri 21 days notice in the prescribed manner. However, no notice shall he Labour Legislation required for effecting any change if it is brought in pursuance of any settle~nent or award or where the workmen are governed by civil services rules or any such rule applicable to the armed forces or such allied categories.
Reference of Dispute to Boards, Courts or Tribunals
If the appropriate government is of the opinion that any dispute exists or is apprehended, it may by order in writing refer the dispute to a Board for settlement or to a Labour Court, if it relates to any matter specified in second schedule or third schedule to a Trihunal for adjudication. In case of receipt of a notice of strike from a public utility industry, the appropriate governinent rnay refer the dispute to a Labour Court or Tribunal irrespective of the fact whether any other proceedingunder the Act may have commenced. The Central Government may refer a dispute in an industry for which the appropriate governrneilt is Central Government to a Labour Court or Tribunal constituted by the State Government.
Voluntary Reference of Disputes to Arbitration
The employer and the workinen lnay agree to refer the dispute to Arbitration by an agreement any time before the dispute has been referred to a Labour Court or Tribunal or National Trihunal .Power of Labour Court, Tribunal & National Tribunal to Give Appropriate Relief in Case of Discharge or Dismissal of Workmen. Whenever ruly industrial dispute relating to discharge or dismissal of a workman is referred to Labour Court, Tribunal or National Tribunal for adjudication and if it is satisfied with the order of discharge or dislnissal was not justified, it may set aside the order of discharge or dismissal and direct the reinstatement of the workman or grant such relief as it may consider necessary.
General Provisions of the Act
Following are some imnportant provisions of lndustrial Disputes Act, 1947 :
(a) Works Conunittee, Conciliation Officer, Boards of Conciliation and Court of Enquiry are meant to bring voluntary settlement of dispute through discussion arid mediation. Their recommendations and findings are not legally enforceable whereas the finding of Labour Court, Tribunal is in the form of Award which is legally ellforceable. (.In receipt of award, the appropriate government has to publish it in the ofticia1 gazette within a period of 30 days and it becomes enforceable on expiry of 30 days from the date of publication.
(b) If the employer prefers to go in appeal against the Award directing reinstatement of any worker in High Court or Supreme Court, it shall have to pay full wages last drawn by the workman during the pendency of such an appeal provided during this period, he is not employed elsewhere.
(c) There is a prohibition on strike and lockout in public utility services until or unless 14 days notice is given to the other party and observe strikellockout within six weeks thereof or before the scheduled date of strikenockout as mentioned in the notice or during the pendency of conciliation proceeding and seven days after conclusion of proceeding.
(d) In case of lay off or retrenchment of workmen or closure or transfer of undertaking, the workmen are entitled for payment of compensation as per the provisions of the Act.
(e) During the pendency of a dispute before Conciliation Ofticer or Board or Arbitrator or Labour Court or Trihunal or National Tribunal, 110 employer shall prejudicially alter the condition of service or discharge or dismiss in regard to any matter connected with the dispute of any workmen except with prior permission in writing from the authority before which the proceeding is pending. However, employer can alter the condition of service or discharge or disnliss the workmen in accordance to the Standing C)rders in accordance with implied or expressed terms c.)f contract of employa~ent in relation to any month notice or salary in lieu thereof and by filing an applicatio~l for approval of his action before the authority before which the dispute is pending.
(f)The elnployer and the workmen can be represented by any of the office bearer of their Associatio~flrade U ~ i i o of
~ l which they are ~ileinber or office bearer of the Federation of Associations/Trade Unions, in any proceeding under the Act.I
No party to a dispute shall be entitled to be represented by legal practitioner in any conciliation proceeding or in any proceeding before a court. However, in proceeding before a Labour Court, Tribunal or National Tribunal, a party to a dispute may be represented by a legal practitio~~er with the consent of the other party and with the leave of the concemedCwrt.
Obligations of the Employer
It is obligatory for an employer to fulfil the following :
(a) to constitute Works Committee and provide facility of its proper function;
(b) to implement all agreements, settlements and awards;
(c) to assist Conciliation Officer, Board, Arbitrator, Labour Court, Tribunal and National Tribunal in performing their functions by rendering necessary infornution and documents;
(d) to pay compensation as per the provisions of the Act in case of lay off, retrenchment or closure and to follow the prescribed procedure for the same;
(e) not to indulge in any unfair labour practice as prescribed under fifth schedule attached with the Act; and
(f) to abide by various provisions of the Act in fulfillment of its responsibility.
Obligations of the Workmen
Every workman is entitled to the following rights under the Act :
(a) to abide by the provisions of the agreements, settlements and awards;
(b) not to adopt any unfair labour practice as enurrlerated in fifth schedule attached with the Act;
(c) to co-operate with management in the effective functioning of Works Committee; and
(d) to assist Conciliation Officer, Board, Arbitrator, Labour Court, Tribunal 'and National Tribunal by furnishing necessary information and documents.
Offences and Penalties
The Act provides varying penalties for different offences with imprisonment ranging from one month to one year and fine ranging from Rs. 100 to Rs. 5,000 or both for contravening the various provisions of the Act.
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