INDUSTRIAL DISPUTES ACT, 1947

Introduction
Prior to the vear 1947, industrial disputes were being settled under the provisions of the Trade
Disputes Act, 1929. Experience of the working of the 1929 Act revealed various defects, which
needed to be overcome by a fresh legislation. Accordingly the Industrial Disputes Bill was
introduced in the Legislature. The Bill was referred to the select committee. On the
recommendations of the
Select Committee amendments were made in the original Bill.
The Industrial Disputes Act, 1947 came into existence in April 1947. It was enacted to make
provisions for investigation and settlement of industrial disputes and for providing certain
safeguards to the workers.
The Act contains 40 sections divided into 7 chapters.

Chapter -I deals with the title, definitions, etc.

Chapter - Il contains the various authorities under the Act. These authorities include
Conciliation Officers, Labour Courts and Tribunals.
Chapter- IIlcontains the main scheme of the Act such as reference of disputes to Labour
Courts and Industrial Tribunals.
the
Chapter - IV lays down the procedure, power and duties of the authorities constituted under
Act.
and
Chapter - Vcontains provisions to prohibit strikes and lockouts, declaration of strikes
lockouts as illegal, and provisions relating to lay-off and retrenchment and closure.
Chapter-VIcontains provisions of various penalties under the Act. Chapter-VIl contains
miscellaneous provisions.

Definition of Industrial Disputes

management
An industrial dispute may be defined as a conflict or difference of opinion between
and
and workers on the terms of employment. It is a disagreement between an employer
conditions and can
employees' representative; usually a trade union, over pay and other working that is the
result in industrial actions. When an industrial dispute occurs, both the parties,
may resort to
management and the workmen, try to pressurize each other. The management
lockouts while the workers may resort to strikes, picketing or gheraos.
dispute is defined as any
As per Section 2(k) of Industrial Disputes Act, 1947, an industrial employers and workmen, or
dispute or difference between employees and employers, or betweennon-employment or the terms
between workmen and which is connected with the employment or
of employment or wih the conditions of labour, of any person.

Objective of the Act

The objective of the Industrial Disputes Act is to secure industrial peace and harmony by
settlement of industrial disputes by
providing machinery and procedure for the investigation and
negotiations.
The Act also lays down:
provision for payment of compensation to the Workman on account of closure or lay off
(a) The
or retrenchment.
Government for laying off or retrenching
(b) The procedure for prior permission of appropriate
the workers or closing down industrial establishments
(c) Unfair labour practices on partof an employer or a trade union or workers.
Applicability
The Industrial Disputes Act extends to whole of India and applies to every
establishment carrying on any business, trade, manufacture or distribution ofindustrial
goods and services
irespective of the number of workmen employed therein.
Every person employed in an establishment for hire or reward including contract labour,
apprentices and part time employees to do any manual, clerical, skilled, unskilled, technical,
operational or supervisory work, is covered by the Act.
This Act though does not apply to persons mainly in managerial or
persons engaged in a supervisory capacity and drawing > 1600 p.m administrative capacity,
or executing managerial
functions and persons subject to Army Act, Air Force and Navy Act or those in police service or
officer or employee of a prison.
Important provisions of the Act
OODefines industry, industrial dispute, layoff, lockout, retrenchment, trade union, strike, wages,
workman etc.
DOProvides machinery for investigating and settling disputes
conciliation officers, boards of conciliation, courts of enquiry, through works committees,
labour courts, tribunals and
voluntary arbitration.
GOReference of dispute for adjudication.
DOAwards of labour courts and tribunals.
DOPayment of wages to workers pending proceedings in High Courts.
DORights of appeal.
DDSettlements in outside conciliation.
DONotice of change in employment conditions.
OProtection of workmen during pendency of proceedings
DOStrike and lockout procedures.
DOLay-off compensation.
DORetrenchment compensation.
OOProceedings for retrenchment.
ODCompensation to workmen in case of transfer of undertakings.
D0Closure procedures.
DOReopening of closed undertakings.
ODUnfair labour practices.
DORecovery of money due from employer.
DOPenalties.
ODObligations and rights ofemployees.
When to consult and refer a dispute
OOWhen a dispute arises with the workers' union.
DOWhen there is a plan to change employment conditions.
UUWhen there is a strike.
OOWhen there isa lock-out.
DOWhen there is retrenchment of workmen.
nnWhen undertaking is being transferred
D0On closure of an establishment.
D0On re-opening establishnent.

Offences/Penalties under the Act

Section Offence Penalty
Sec.25-Q Lay-Off or Retrenchment without prior Workman entitled to allbenefits as if they had
permission -Contravening the provisions of not been laid off. Employer shall be punishable
fine
Section 25-M or 25-(N) with imprisonment upto 1 month and / or
upto Rs. 1000.
had
Sec.25 legal Closure: Workman entitled to all benefits as if there
R(1) Closing down an undertaking not been any closure.
without complying with the provisions of Employer shall be punishable with imprisonment
Section 25-0(1) upto6 month and /or fine upto Rs. 5000.

Sec.25 Contravening an order refusing permission to Workman entitled to allbenefits as if

R(2) close down the undertaking under Section 25 there had not been any closure.
O
or adirection given under Section 25-P Employer shall be punishable with
imprisonment upto 1 year and /or
fine upto Rs. 5000, with a further fine of upto
2000 Rs for each day of contravention after
conviction
Sec.25-T, Commiting an Unfair Labour Practice. Imprisonment upto 6 months and/or fine upto
Rs. 1000.
25-U
Sec.26 (1) llegal strikes by a workman - workman who Imprisonment for 1 month and /or fine upto Rs.
commences, continues or otherwise acts in 50.
furtherance, of,a strike which is illegal under that
Act
Imprisonment for 1 month and/ or fine upto Rs.
Sec.26 (2) llegal lockout -employer who commences,
continues, o otherwise acts in furtherance of a 1000.
lock-out which is illegal under this Act
Imprisonment for 6 month and /or fine upto Rs.
Sec.27 Instigation - Any person who instigates or incites
1000.
others to take part in, or otherwise acts in
furtherance of, a strike or lock-out which is
illegal under that Act
Financial Assistance to aStrike - Any person Imprisonment for 6 month and /or
Sec.28
fine upto Rs. 1000.
who knowingly expends or applies any money
in direct furtherance or support of any illegal
strike or lock-out
Imprisonment for 6 month and/ or fine + an
Sec.29 Breach of settlement or award binding under
additional fine of Rs. 200 per day if breach
the act
continues after conviction.

Sec.30 Disclosing confidential information in Imprisonment for 6 month and/ or

contravention of the provisions of Section 21 fine Rs. 1000.
Sec.30-A Closing down any undertaking without complying Imprisonment for 6 month and/ or fine Rs. 5000.
with the provisions of Section 25
FFA
Contravention of Section 33-Service conditions Imprisonment for 6 month and/ or fine Rs. 1000.
Sec.31(1)
remaining unchanged during
pendency of proceedings
Sec.31(2) Contravening any other provision where specific Fine upto Rs. 100.
penalty is not provided for.
 Authorities Empowered By This Act
Name of Duties
Powers
Authority
Central To determine the extent of To appoint Conciliation Officers, Boards of
Government the act and to make rules to give effect to
the Conciliation, Courts of Inquiry, Labour Courts and
Act
Tribunals, to refer disputes to these bodies, to
make rules, to delegate its powers to other
State To make rules to give officers, and to amend the Schedules to the Act
Government to the Act in the effect To appoint Conciliation Officers, Boards of
State and to Conciliation, Courts of Inquiry, Labour Courts and
implement the act in the
State Tribunals, to refer disputes to these bodies, to
make rules, to delegate its powers to other
Conciliation
Officer Appointed by the
appropriate
officers, and to amend the Schedules to the Act
the government
mediate in and promote to To enter the premises of any establishment
industrial disputes settlement
of related to adispute, enforce the attendance of
Court of
Inquiry Constituted by the
for inquiring into anyapproprlate government
any person for examination
To enter the premises of any
matter appearing to be
connected with or relevant to an establishment
related to a dispute, enforce the
Dispute Industrial attendance
any person for examination, compel
of
the
Board of production of documents, appoint one or more
Appointed by the appropriate government for
Conciliation promoting people having special knowledge of the
To enter the matter
the settlement of an premises of any
dispute. industrial establishment
related to a dispute, enforce the
any person for attendance of
examination, compel the
production of documents, appoint one or more
Labour Appointed by the people havingspecial
the adjudication ofappropriate government for To enter the premises knowledge
Courts of the matter
industrial disputes relating related to a of any
toany matter specified in the Second
establishment
dispute, enforce the
Schedule and for performing such other any person for examination, attendance of
compel the
functions as may be assigned to them under production of documents, appoint one or more
this Act. people having special knowledge of the
Tribunals matter
Appointed by the appropriate government for To enter
the adjudication of Industrial the premises of any
Disputes
to matters specified in lnd or lll rd relating related to a dispute, enforce establishment
the
Schedule. any person for examination, attendance of
compel the
production of documents, appoint one or more
National Appointed by the appropriate government for people having special knowledge of the matter
Tribunals the adjudication of Industrial To enter the premises of any
establishment
Disputes of related to a dispute, enforce the
national importance/affecting any person for examination, compel attendance of
several States the
productionof documents, appoint one or more
people having special knowledge of the matter
THE CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970
establish ments and by contractors.
This legislation regulates the employment of contract labourers in
The Rules for implementing the provisions of the Act vary from state to state.

Applicability of the Act the preceding 12

months
or engaged on any day of
An establishment which engages 20 or more persons to
contract labourers come under the purview of the legislation. The legislation is also applicable
preceding
as labourers, or who employed on any day of the
contractors whoemploy workmen as contract
12 months.

Authorities under the Act

i. Registering officer of the area - to whom application shall be made for the grant of
area is the person
The Registering Officer of the purpose of engaging contract labourers. Any change inthe
certificate of registration, for the
establishment shallbe intimated to the amendment to the certificate shall be made by
change, and an
Registering officer within 30 days of
applying to him.
area - the purpose of
ii. Licensing officer of the person from whom a contractor shall obtain licence for of the application
respect
The Licensing officer is the entitled to make such investigation as required in
engaging contractors. He is (Section 12)
received from a contractor.
for which shall be
ii. Inspectors - appointed for a particular area the local limits place,
Under Section 28
Inspectors shall be hours any place where contract labour takes
enter at all reasonable to
defined. He has the power to notices, to examine persons, to collect information,
is
verifying registers, records or exercise such other powers as
for the purpose of registers, records of wages, or notices, and to
seize or take copies of
prescribed.
Labour Act, 1971
the Contract
Important provisions of
employer Officer. The
Registration of principal application for registration, to the Registering payment of fees.
has to file an showing the
The Principal employer in tripllcate, accompanled by treasury recelpt Registration. If the
application must be made Company and Issue a
Certificate of
will register the would be that the workmen employed
The Registering Officer Certificate of f Registration, the position
which is the
Companyfails toobtain deemed to be employed by the Company,
would be
by the Contractors
Principal Employer.
Principal
Licensing of contractors only through licensed contractors. The
should engage workmen hold a licence
The Principal employer Contractors engaged by it for various services,
emplover should therefore ensure that the
issued under the Act.
wages
Responsibility for payment of
 of
employer must nominate a representative to be present at the time of disbursementcontract
The Principal representative must certify the amounts pald as wages
to the
wages by the contractor and such
labourers.

Facilities to be provided to contract labourers

contract labourers if the contractors do not
provide
to the
The following facilities should be provided
it:
1) Rest rooms
2) Canteen
3) Latrines and urinals
4) Drinking water
5)First aid facilities
Submission of retums
completion of each
should file a return within 15 days of the commencement or
The Principal employer employer has to file Annual Return in duplicate
to
each contractor. The Principal
contract work under details of the contractors
Registering Officer before the 15th of February every year containing
the
engaged in the previous year. in duplicate within 30 days from the close of the
half
yearly returns the 1st of July
The contractor should file half months commencing from the 1st of January and
period of 6
year, whích in this case is a
Officer.
every year, to the Licensing
Maintenance of records contractors should maintain the
of contractors. The
The Principal ermployer should maintain a register
following registers:
1) Register of personsemployed.
2) Muster roll
3) Register of wages
for damage or loss
4) Register of deductions
5) Register of fines
6) Register of advances
7) Register of overtime

Displays wage
disbursement of wages, rate of wages, hours of work, and date of
time of jurisdiction
Notice showing the place and name and addresses of the Inspector having understood by
wages,
period, dates of payment of displayed in the premises in the local language
should be
payment of unpaid wages
labourers.
majority of the contract