SCOPE AND OBJECT

The Industrial Dispute Act of The Industrial Dispute Act of 1947, came into force on the first day of
April 1947. Its aim is to protect the workmen against victimization by

1947 the employers and to ensure social justice to both employers and
employees. The unique object of the Act is to promote collective
bargaining and to maintain a peaceful atmosphere in industries by
avoiding illegal strikes and lock outs.

Definitions
Contd.
Appropriate Government [Sec. 2(a)]: Appropriate Government means the Industry [Sec. 2(j)]: Industry means any business, trade, undertaking, manufacture or calling of
Central Government in relation to any industrial dispute concerning any employers and includes any calling, service, employment, handicraft or industrial occupation or
industry carried on by or under the authority of the Central Government, any avocation of workmen.
industry carried on by a Railway Company, any controlled industry specified
by the Central Government, Corporations under the Central Statutes, Banking Industrial Dispute [Sec. 2(k)]: means any dispute or difference between employers and employers,
company, Insurance company. Mines. Oil field, Cantonment board, Major or between employers and workmen, or between workmen and workmen, which is connected with
ports, etc. In relation to any other industrial dispute, the appropriate the employment or non-employment or the terms of employment or with the conditions of labour,
Government is the State Government. of any person.

Award [Sec 2 (b)] means an interim or a final determination of any industrial

dispute or of any question relating thereto by any Labour Court, Industrial
Tribunal or National Industrial Tribunal and includes an arbitration award.
 Contd. Contd.
Wages Sec 2 (rr) " wages" means all remuneration capable of being expressed in terms of money, Workman Sec 2(s) " workman" means any person (including an apprentice) employed in any
which would, if the terms of employment, expressed or implied, were fulfilled, be payable to a industry to do any manual, unskilled, skilled, technical, operational, clerical or supervisory work
workman in respect of his employment or of work done in such employment, and includes-- for hire or reward, whether the terms of employment be express or implied, and for the purposes
(i) such allowances (including dearness allowance) as the workman is for the time being entitled to; of any proceeding under this Act in relation to an industrial dispute, includes any such person who
(ii) the value of any house accommodation, or of supply of light, water, medical attendance or other has been dismissed, discharged or retrenched in connection with, or as a consequence of, that
amenity or of any service or of any concessional supply of food- grains or other articles; dispute, or whose dismissal, dischasrge or retrenchment has led to that dispute, but does not
include any such person--
(iii) any travelling concession;
(i) who is subject to the Air Force Act, 1950 (45 of 1950 ), or the Army Act, 1950 (46 of 1950 ),
(iv) 2 any commission payable on the promotion of sales or business or both;] but does not include-- or the Navy Act, 1957 (62 of 1957 ); or
(a) any bonus; (ii) who is employed in the police service or as an officer or other employee of a prison; or
(b) any contribution paid or payable by the employer to any pension fund or provident fund or for (iii) who is employed mainly in a managerial or administrative capacity; or
the benefit of the workman under any law for the time being in force;
(c) any gratuity payable on the termination of his service; (iv) who, being employed in a supervisory capacity, draws wages exceeding one thousand six
hundred rupees per mensem or exercises, either by the nature of the duties attached to the office or
by reason of the powers vested in him, functions mainly of a managerial nature.

Contd. Contd.
Settlement [Sec. 2(p)]: Settlement means a settlement arrived at in the course of conciliation 2(n) Public Utility Service is defined under section 2(n) of the Industrial Disputes Act, 1947. This
proceeding and includes a written agreement between an employer and a workman arrived at definition circumscribes six major industries and services that meet the regular exigencies of
otherwise than in the course of conciliation proceeding where such agreement has been signed by people. These are
the parties thereto in such manner as may be prescribed and a copy thereof has been sent to an
officer authorised by the Appropriate Government and the Conciliation Officer.
(i) any railway service or any transport service for the carriage of passengers or goods by air;
Wages [Sec. 2(rr)]: Wages mean all remuneration capable of being expressed in terms of money, (ia) any service in, or in connection with the working of, any major port or dock;
which would, if the terms of employment, express or implied were fulfilled, be payable to a (ii) any section of an industrial establishment, on the working of which the safety of the
workman in respect of his employment or of the work done in such an employment and includes: establishment or the workmen employed therein depends;
(i) such allowances (including dearness allowance) as the workman is for the time being entitled (iii) any postal, telegraph or telephone service;
to; (iv) any industry which supplies power, light or water to the public;
(ii) the value of any house accommodation, or of supply of light, water, medical attendance or (v) any system of public conservancy or sanitation;
other amenity.
(iii) Any traveling concession. (vi) any industry specified in the First Schedule which the appropriate Government may, if
satisfied that public emergency or public interest so requires, by notification in the Official
Gazette, declare to be a public utility service for the purposes of this Act, for such period as may
be specified in the notification
 What is a Public Utility Service (PUS)?
Contd.
Public utilities are those business undertakings which provide necessary services to
the society. The undertakings dealing with the supply of electricity, gas, power,
water and transport etc. are all covered under public utility services. All these things
are needed in the day-to-day life of the people.

The fundamental characteristics of the public utility service are:

• Supply of indispensable necessities
• Consistent and non-transferable demand
• Monopoly
• Massive capital investments

Dispute Settlement Authorities Under The Act

Works Committee [Sec. 3]:
In the case of an industrial establishment in which 100 or more workmen are
The I.D. Act provides elaborate and effective machinery for the investigation and amicable settlement of
industrial disputes by setting up the various authorities. These are: employed, the appropriate Government may require the employer to constitute a
i. Works Committee; 'Work Committee'. It consists of equal number of representatives of employers and
ii. Conciliation Officer; workmen engaged in the establishment. The representatives of the workmen shall
iii. Conciliation Board; be chosen from amongst the workmen engaged in the establishment and in
iv. Court of Enquiry; consultation with the registered trade union, if any. Works committee deals with the
v. Labor Court; workers problem arising day to day in the industrial establishment.
vi. Industrial Tribunal;
vii. National Tribunal;
viii. Arbitrators;
ix. Grievances Settlement Authority.
Conciliation Officer [Sec. 4] Duties of Conciliation Officers.
The appropriate Government is empowered to appoint any number of persons, as it
thinks fit, to be conciliation officers. The conciliation officer having duty of • Hold conciliation proceedings relating to Strikes and lockouts procedural matters of public
mediating and acts as the mediators in between the parties to resolve the dispute. utility services.
• Investigate the matters of the disputes.
If the conciliation officer fails to resolve the dispute between the parties, he should • Conciliation officers shall induce the parties to come to a fair and amicable settlement of the
report to the appropriate government. If necessary, the dispute shall be referred to dispute.
the Board, Labor Court, Tribunal or National Tribunal, by the appropriate • Duty to send the report of settlement of dispute and memorandum of the settlement signed by
government. the parties to the dispute to the government or his superior.
• In case of failure of settlement of dispute in between parties, duty to send them to the
government or his superior, report of facts and circumstances relating to the disputes.
• Duty to send the report to the government or his superior within 14 days from the
commencement of the proceeding.

Duties of board.
CONCILIATION BOARD [Sec. 5]:
As occasion arises appropriate Government is also authorized to constitute a • It shall be the duty of the Board to endeavor to bring about a settlement of dispute.
Board of conciliation for promoting the settlement of an industrial dispute. It • Investigate the matters relating to the dispute between parties and inducing the
consists of a chairman who shall be an independent person, and two or four parties to come to a fair and amicable settlement of the dispute.
other members. The members appointed shall be in equal numbers to
represent the parties to the dispute. On the dispute being referred to the Board • In case of failure of settlement of dispute in between parties, duty to send to the
it is the duty of the Board to do all things as it thinks fit for the purpose of government the report of facts and circumstances relating to the disputes and
inducing the parties to come to fair and amicable settlement. board opinion.
• The Board shall submit its report under this section within 2 months of the date on
which the dispute was referred to it or within such shorter period as may be fixed
If there are many parties relating to or in the dispute the government may by the appropriate Government.
appoint the conciliation board consisting of the above said members
 ADJUDICATION (Labour Court [Sec. 7]):
COURT OF ENQUIRY [Sec. 6]:
As occasion arises, Government can initiate a Court of Inquiry. This Court of The appropriate Government is empowered to constitute one or more Labour
Inquiry was to find out matters connected with or relevant to an industrial dispute. Courts. Its function is the adjudication of industrial disputes relating to any matter
Where a Court consists of two or more members, one of them shall be appointed as specified in the Second Schedule.
the chairman. A Labour Court consists of one person only. A person is qualified to be appointed
A Court of Inquiry looks into only matters which are referred to it by Government as presiding officer of a Labour Court, if:
and submits its report to the Government ordinarily within certain period from the (a) he is, or has been a judge of a High Court, or
date of reference.
(b) he has been a District judge or an Additional District judge for at least three
years, or
(c) he has held the office of the chairman or any other member of the Labour
Appellate Tribunal or of any Tribunal for at least two years, or

Contd. Industrial Tribunal [Sec. 7A]:

(d) he has held any judicial office in India for not less than seven years, or The appropriate Government may, by notification in the Official Gazette,
(e) he has been the presiding officer of a Labour Court constituted under any constitute one or more Industrial Tribunals for the adjudication of industrial
Provincial Act or State Act for at least five years. disputes relating to any matter, whether specified in the Second Schedule or
(f) he is or has been a Deputy Chief Labour Commissioner (Central) or Joint the Third Schedule and for performing such other functions as may be
Commissioner of the State Labour Department , having a degree in law and at assigned to them under this Act.
least 7 years’ experience in the labour department after having acquired For appointment as the presiding officer of a Tribunal
degree in law including three years of experience as Conciliation Officer:
• he is, or has been, a Judge of a High Court; or
(g) as the case may be, before being appointed as the presiding officer; or (g)
he is an officer of Indian Legal Service in Grade III with three years’ • he has, for a period of not less than 3 years, been a District Judge or an
experience in the grade.” Additional District Judge;
National Tribunal [Sec. 7 (B)]: Contd.
The Central Government may, by notification in the Official Gazette, According to [Sec 10 (1-A)] dispute involves any question of national importance or is of such a nature that
industrial establishments situated in more than one State, whether it relates to any matter specified in the
constitute one or more National Industrial Tribunals. Its main function is the Second Schedule or the Third Schedule, the government will order in writing refer to National Tribunal for
adjudication.
adjudication of industrial disputes which involve questions of national
importance or affecting the interest of two or more States. According to [Sec 10 (2)] when parties in the industrial dispute apply to the government to refer dispute to
the National Tribunal and if government satisfies it shall make the reference to the National Tribunal.
• The Central Government shall appoint a National Tribunal consisting of one person only.
• A person to be appointed a presiding officer of a National Tribunal 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 a period of not less than two years.
• The Central Government may appoint two persons as assessors to advise the National Tribunal.

ARBITRATION Grievance procedure

Voluntary reference of disputes to arbitration. [sec. 10 (a)]: Grievance Settlement Machinery [Sec. 9 (c)]: This Section is incorporated as a new chapter II B of the Act. As per this
Section, the employer in relation to every industrial establishment in which fifty or more workmen are employed or
have been employed on any day in the preceding twelve months, shall provide for, in accordance with the rules made in
An arbitrator is appointed by the Government. Whether the dispute is before Labor that behalf under this Act, a Grievances Settlement Authority.
Court, or Industrial Tribunal or National Tribunal, the parties can go to arbitration • Every industrial establishment employing 20 or more workmen shall have one or more Grievance Redressal
Committee for the resolution of disputes arising out of individual grievances.
by written agreement. The arbitrators conduct the investigation into the dispute
• The Grievance Redressal Committee shall consist of equal number of members from the employer and the workmen.
matters and give arbitration award (final decision or settlement or decree).
• The chairperson of the Grievance Redressal Committee shall be selected from the employer and from among the
If an industrial dispute exists or is apprehended and the employer and the workman workmen alternatively on rotation basis every year.
agree to refer the dispute to an arbitration, they may refer the dispute to an • The total number of members of the Grievance Redressal Committee shall not exceed more than 6:
• Provided that there shall be, as far as practicable, one-woman member if the Grievance Redressal Committee.
arbitration. But such reference shall be made before the dispute has been referred to
• The Grievance Redressal Committee may complete its proceedings within 45 days on receipt of a written application
a Labor Court or Tribunal or National Tribunal by a written agreement. The by or on behalf of the aggrieved party.
arbitrator may be appointed singly or more than one in number. • The workman who is aggrieved of the decision of the Grievance Redressal Committee may prefer an appeal to the
employer against the decision of Grievance Redressal Committee and the employer shall, within one month from the
date of receipt of such appeal, dispose off the same and send a copy of his decision to the workman concerned.
 PERIOD OF OPERATION OF SETTLEMENTS AND
AWARDS. [Sec 19] Notice of change [Section 9A.]

A settlement shall come into operation on such date as is agreed upon by the No employer, who proposes to effect any change in the conditions of service
parties to the dispute, and if no date is agreed upon, on the date on which the applicable to any workman in respect of any matter specified in the Fourth
memorandum of the settlement is signed by the parties to the dispute. Schedule, shall effect such change,-
An award shall remain in operation for a period of one year from the date on
which the award becomes enforceable under section 17A (a) without giving to the workmen likely to be affected by such change a notice in
the prescribed manner of the nature of the change proposed to be effected; or

(b) within twenty-one days of giving such notice:

STRIKES AND LOCKOUTS PROCEDURE OF STRIKES

Strike [Sec. 2 (q)]: Strike means "a cessation of work by a body of persons employed in any According to Sec. 22(1) No person employed in a public utility service shall
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 go on strike in breach of contract-
employment". Mere stoppage of work does not come within the meaning of strike unless it can be
shown that such stoppage of work was a concerted action for the enforcement of an industrial (a) without giving to the employer notice of strike, as hereinafter provided,
demand. within six weeks before striking; or
Lockout [Sec. 2(1)]: Lockout means "the temporary 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 (b) within fourteen days of giving such notice; or
employed by him". Lockout is the antithesis of strike.
It is a weapon of the employer while strike is that of the workers.
(c) before the expiry of the date of strike specified in any such notice as
Just as a strike is a weapon in the hands of the workers for enforcing their industrial demands,
aforesaid; or
lockout is a weapon available to the employer to force the employees to see his points of view and (d) during the pendency of any conciliation proceedings before a conciliation
to accept his demands.
The Industrial Dispute Act does not intend to take away these rights.
officer and seven days after the conclusion of such proceedings.
However, the rights of strikes and lockouts have been restricted to achieve the purpose of the Act,
namely peaceful investigation and settlement of the industrial disputes.
Difference between strike and lockout Lay-Off
Section 2(kkk) 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 breakdown of machinery or natural calamity or for any other
connected reason to give employment to a workman whose name is borne in
mustor rolls of his industrial establishment.

Retrenchment
Difference between Layoff & Retrenchment
[Section 2(oo)] "retrenchments" means the termination by the employer of the
service of a workman for any reason whatsoever, otherwise than as a
punishment inflicted by way of disciplinary action but does not include-
(a) voluntary retirement of the workman; or
(b) retirement of the workman on reaching the age of superannuation if the
contract of employment between the employer and the workman concerned
contains a stipulation in that behalf; or
(c)Termination of the service of the workman as a result of the non-renewal of
the contract of employment between the employer and the workman
concerned.
(d) Termination of the service of a workman on the ground of continued
ill-health;
Prohibition of unfair labor practice

According to [section 25T] No employer or workman or a trade union,

whether registered under the Trade Unions Act, 1926 (16 of 1926), or not,
shall commit any unfair labor practice.

Penalty for committing unfair labor practices According to [section 25U]

Any person who commits any unfair labor practice shall be punishable with
imprisonment for a term which may extend to 6 months or with fine which
may extend to Rs.1000/- or with both.

PUBLIC UTILITY SERVICES

FIRST SCHEDULE Contd.
INDUSTRIES WHICH MAY BE DECLARED TO BE PUBLIC UTILITY SERVICES Iron and steel.
UNDER SUB-CLAUSE (VI) OF CLAUSE (N) OF SECTION 2 Defence establishments.
Transport (other than railways) for the carriage of passengers or goods by land or water. Service in hospitals and dispensaries.
Ports or Docks Fire brigade service.
any postal, telegraph or telephone service; India Government Mints.
any industry which supplies power, light or water to the public India Security Press.
any system of public conservancy or sanitation; Copper Mining.
Banking. Lead Mining.
Cement. Zinc Mining.
Coal. Iron Ore Mining.
Cotton textiles.
Foodstuffs.
MATTERS WITHIN THE JURISDICTION OF LABOUR COURTS. Matters with in The Jurisdiction of Industrial Tribunals
SECOND SCHEDULE THIRD SCHEDULE
• The propriety or legality of an order passed by an employer under the standing orders;
• The application and interpretation of standing orders; 1. Wages, including the period and mode of payment;
• Discharge or dismissal of workmen including reinstatement of, or grant of relief to, workmen 2. Compensatory and other allowances;
wrongfully dismissed; 3. Hours of work and rest intervals;
• Withdrawal of any customary concession or privilege; 4. Leave with wages and holidays;
• Illegality or otherwise of a strike or lock-out; and 5. Bonus, profit sharing, provident fund and gratuity;
• According to [Sec 10 (1) (c)] matters specified in THIRD SCHEDULE, dispute not effecting 6. Shift working otherwise than in accordance with standing orders;
more than 100 workers can be referred to labour court.
• According to [Sec 10 (2)] when parties in the industrial dispute apply to the government to refer 7. Classification by grades;
dispute to the labour court and if government satisfies it shall make the reference to the labour 8. Rules of discipline;
courts. 9. Retrenchment of workmen and closure of establishment; and
• According to [Sec 10 (6)] no Labour Court or Tribunal shall have jurisdiction to adjudicate upon 10. Any other matter that may be prescribed.
any matter which is under adjudication before the National Tribunal.

THE FOURTH SCHEDULE : Conditions of UNFAIR LABOUR PRACTICES

Service for Change of which notice is to be given FIFTH SCHEDULE
1. Wages, including the period and mode of payment; On the part of employers and trade unions of employers
2. Contribution paid, or payable, by the employer to any provident fund or pension fund or 1. To interfere with, restrain from, or coerce, workmen in the exercise of their right to organise,
for the benefit of the workmen under any law for the time being in force; 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, that is to say, -
3. Compensatory and other allowances; (a) threatening workmen with discharge or dismissal, if they join a trade union;
4. Hours of work and rest intervals; (b) threatening a lock-out or closure, if a trade union is organised; and
5. Leave with wages and holidays; (c) granting wage increase to workmen at crucial periods of trade union organisation, with a view to
6. Starting, alteration or discontinuance of shift working otherwise than in accordance with undermining the efforts of the trade union at organisation.
standing orders; 2. To dominate, interfere with or contribute support, financial or otherwise, to any trade union, that is
7. Classification by grades; to say :-
8. Withdrawal of any customary concession or privilege or change in usage. (a) an employer taking an active interest in organising a trade, union of his workmen; and
(b) an employer showing partiality or granting favour to one of several trade unions attempting to
9. Introduction of new rules of discipline, or alteration of existing rules, except in so far as organise his workmen or to its members, where such a trade union is not a recognised trade union.
they are provided in standing orders;
Contd.
3. To establish employer-sponsored trade unions of workmen.
4. To encourage or discourage membership in any trade union by discriminating against any
workman, that is to say :-
(a) discharging or punishing a workman, because he urged other workmen to join or
organise a trade union;
(b) discharging or dismissing a workman for taking part in any strike (not being a strike
which it deemed to be an illegal strike under this Act);
(c) changing seniority rating of workmen because of trade union activities;
(d) refusing to promote workmen to higher posts on account of their trade union activities;
(e) giving unmerited promotions to certain workmen with a view to creating discord
amongst other workmen, or to undermine the strength of their trade union;
(f) discharging office bearers or active members of the trade union on account of their trade
union activities.