INDUSTRIAL DISPUTE ACT 1947

Industrial Dispute Act came into force on the First day of April, 1947. This act is based on
the Principle of social security and justice and to make provisions for the investigation and
settlement of industrial disputes, and for certain other purposes. It extends to the whole of
India.
SOME IMPORTANT DEFINITIONS
1 Industrial Dispute : Industrial Dispute means any dispute or difference between
employee and employer or between employer and workmen or between workmen 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.
2 Workman : Workman means any person employed in any industry to do any manual,
unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward,
but does not include any such person :-
(a) Who is employed in the police service or as an officer or other employee of a prison,
or
(b) Who is employed mainly in a managerial or administrative capacity, or
(c) Who is subjected to the Air Force Act, Army Act or Naval Act, or
(d) Who is employed in a supervisory capacity, drawn wages exceeding one thousand six
hundred rupees per month.
3 Lay Off : 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 on the muster rolls of his industrial establishment and
who has not been retrenched.
4 Lock Out : Lock out means the temporary closing of a place of employment or the
suspension or work, or the refusal by an employer to continue to employ any number of
persons employed by him.
5 Retrenchment : Retrenchment 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 voluntary retirement, retirement on attaining the
age of superannuation, termination of service as a result of the non renewal of the contract
and termination of the service on the ground of continued ill-health.
Conditions precedent to retrenchment of Workman :
No workman employed in any industry who has been in continous service for not less
than one year under an employer shall be retrenched by that employer until :-
(a) The workman has been given one month’s notice in writing indicating the reasons for
retrenchment and the period of notice has expired or the workman has been paid in
lieu of such notice, wages for the period of the notice;
(b) The workman has been paid, at the time of retrenchment, compensation which shall
be equivalent to fifteen days average pay for every completed year of continous
service or any part thereof in excess of six months and
(c) Notice in the prescribed manner is served on the appropriate government or such
authority as may be specified by the appropriate government by notification in the
Official Gazette.
6 Strike : Strike means cessation of work by a body of persons employed in any industry
acting combination, or a concerted refusal, or a 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.
7 Wages : Wages means all remuneration capable of being expressed in terms of money,
which would, if the terms of employment were fulfilled, be payable to a workman and it
includes allowances, value of housing accommodation or of supply of light, water,
medical attendance, any travelling concession etc.
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 But `wages’ does not include any bonus; any contribution paid or payable by the
employer to any Pension or Provident Fund and any gratuity payable on the termination
of service.
8 Workman : Workman means any person (including an apprentice) employed in any
industry to do any manual, unskilled, skilled, technical, operational, clerical or
supervisory work for hire or reward.
But does not include any such person :-
i. who is subjected to the Air Force Act, Army Act, Navy Act,
ii. who is employed in the Police Service
iii. Who is employed mainly in a managerial or administrative capacity;
iv. Who being employed in a supervisory capacity, draws wages exceeding 1600/- P.M.
9 Industry : Industry means any business, trade, undertaking, manufacture or calling of
employers and includes any calling service, employment, handicraft or industrial
occupation or avocation or workman whether such workman are employed by such
employer directly or by or through any agency including a contractor for the purpose of
production, supply or distribution of goods or services with a view to satisfy human wants
or wishes which are merely spiritual or religious in nature whether or not. :
(a) Any capital has been invested for the purpose of carrying on such activity, or
(b) Such activity is carried on with a motive to make any gain or profit and includes.
(i) Any activity of the dock labour board.
(ii) Any activity relating to the promotion of sales or business or both carried on by an
establishment.
But does not include. :
i. Any Agriculture operation.
ii. Hospitals or Dispensaries.
iii. Educational, Scientific Research or Training institutions.
iv. Institutions owned or managed by organizations wholly or substantially engaged in
any Charitable, Social or Philanthropic service, or
v. Khedi or Village industries, or
vi. Any activity of the Government relating to his Sovereign functions of the
Government.
vii. Any Domestic service, or
viii.Any activity being a profession practiced by an individual or body of individuals, if
the number of persons employed by the individuals or body of individuals in relation
to such profession is less than ten., or
ix. Any activity being carried on by a co-operative society or a club or any other like
body or individuals, if the number or persons employed by the co-operative society,
club or other such body or individuals in relation to such activity is less than 10.
SETTLEMENT MACHINERY/AUTHORITIES UNDER I.D.ACT
1 Works Committee : The works committees are setup where 100 or more workmen are
employed on any day in the preceding twelve months. In such cases the appropriate Govt.
may by general or special order require the employer to constitute in the prescribed
manner a works committee. In the committee equal number of representative of workmen
and management are included. This committee promotes good industrial relation between
workman and employer.
2 Conciliation Officer : The appropriate Govt. may by notification in the official gazette,
appoint such number of persons as it thinks fit, to be conciliation officer, charged with the
duty of mediating in and promoting the settlement of industrial dispute. He may be
appointed for specified areas or for specified industries in a specified area or for one or
more specified industries and either permanently or for a limited period.
3 Boards of Conciliation : The appropriate Govt. as the occasion arises constitute a Board
of conciliation for promoting the settlement of an Industrial dispute.

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 The board shall consist of one chairman and two or four members as the appropriate
Govt. thinks fit. The chairman shall be independent and other members shall be persons
appointed in equal number to represent the parties to the disputes.
4 Court of enquiry : The court of enquiry is constituted by the appropriate Govt. to
enquire into any matter appearing to be connected with or relevant to an industrial
dispute. A court may consist of one independent person or of such number of independent
persons as the appropriate Govt. may thinks fit and where a court consists of two or more
members, one of them shall be appointed as the chairman.
5 Labour courts : One or more labour courts may be constituted by the appropriate Govt.
for adjudication of industrial disputes relating to the following matters and performing
such other functions as may be assigned to them under this act.:
(a) Propriety or legality of an order passed by an employer under the standing order.
(b) Application and interpretation of standing orders.
(c) Discharge or dismissal of workman including reinstatement of, or grant of relief to,
workman wrongfully dismissed.
(d) Withdrawal of any customary concession or privilege.
(e) Illegality or otherwise of a strike or lock out, and
(f) All matters other than those specified in third schedule.
6 Tribunal : The appropriate Govt. may constitute one or more Tribunals for adjudication
of industrial disputes in accordance with the provisions of this act. The matter concerning
the :-
(a) Wages including the period and mode of payment,
(b) Compensatory and other allowances,
(c) Hours of any rest/intervals,
(d) Bonus, profit sharing,
(e) Leave with wages holidays,
(f) Shift working and otherwise.
7 National Tribunals : National Tribunals can be constituted by the Central Govt. by
notification in the official gazette for the adjudication of industrial disputes which in the
opinion of the central Govt., 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. This tribunal shall consist of one person only to
be appointed by the central Govt. The central Govt. may appoint two persons as assessors
to advise the national tribunals in the proceedings before it, if thinks fit so.
Procedure, Powers & Duties of Authorities :
1. Subject to any rules that may be made in this behalf, an arbitrator, a Board, Court, Labour
Court, Tribunal or National Tribunal shall follow such procedure as the arbitrator or other
authority concerned may think fit.
2. A conciliation officer or a member of a Board, or court or the presiding officer of a
Labour Court, Tribunal or National Tribunal may, for the purpose of inquiry into any
existing or apprehended Industrial dispute, enter the premises occupied by any
establishment to which the dispute relates.
3. Every Board, Court, Tribunal shall have the same powers as are vested in a Civil Court
under the code of Civil procedure 1908 when trying a suit. Every inquiry or investigation
by a Board, Court or Tribunal shall be deemed to be a Judicial proceeding within the
meaning of Section 193 & 228 of IPC (45 of 1860).
4. Conciliation officers shall have the same powers as are vested in a Civil Court under the
code of Civil Procedure 1908 in respect of enforcing the attendance of any person and
examine him or of compelling the production of documents.
5. All conciliation officers, members of the Board or Court, Tribunal or National Tribunal
shall be deemed to be public servants within the meaning of Section 21 of the Indian
Penal code.

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 Duties of Conciliation officers :
1. Where an Industrial Dispute exists or is apprehended the conciliation officer may or,
where the dispute relates to a public utility service and a notice under Section 22 has been
given shall hold conciliation proceeding in the prescribed manner.
2. The conciliation officer shall, for the purpose of brining about a settlement of the dispute,
investigate the dispute and all matters affecting the merits and do all such things for the
purpose of inducing the parties to come to a fair and amicable settlement of dispute.
3. If a settlement of dispute or of any matters in dispute is arrived at in the course of
conciliation proceedings, conciliation officers shall send a report to appropriate
Government or an officer nominated by Government together with a Memorandum of the
settlement signed by the parties to the dispute.
4. If no such settlement is arrived at, the conciliation officer shall as soon as practicable after
the close of the investigation send to the appropriate Government a full report setting
forth the steps taken by him for ascertaining the facts and circumstances relating to the
dispute and reasons on account of which, in his opinion, a settlement could not be arrived
at.
5. A report under this section shall be submitted within fourteen days of the commencement
of the conciliation proceedings or within such shorter period as may be fixed by the
appropriate Government.
Duties of Board
Where a dispute has been referred to a Board, it shall be the duty of the Board to endeavour
to bring about a settlement of the same and do all such things as it thiniks fit to come to a fair
and amicable settlement of the dispute.
If a settlement of the dispute is arrived at, the Board shall send a report thereof to the
appropriate Government (within two month or shorter period as may be fixed by the
Government).
If no such settlement is arrived at, Board will send full report including steps takes by the
Board, to the appropriate Government.
On the receipt of a report if appropriate Government does not make a reference to a labour
Court or Tribunal, it shall record and communicate to the parties concerned its reasons
thereof.
Duties of Courts :
A court shall inquire into the matters referred to it and report therein to the appropriate
Government ordinarily within a period of six months from the commencement of its enquiry.
Duties of labour courts, Tribunals & National Tribunals :
Where an industrial dispute has been referred to a labour courts / Tribunals, it shall hold its
proceedings and shall within the specified period, submit its award to the appropriate
Government.
Publication of report and award :
Every report of a Board, Court or Tribunal shall be published within a period of thirty days
from the date of its receipt by the appropriate Government.
Commencement of the award :
An award shall become enforceable on the expiry of thirty days from the date of its
publication. Appropriate Government (Central Government) may, by notification in the
official gazette, declare that the award shall not become enforceable.
Strike in pubic utility services :
Public utility service means.:
1. Any Railway service (for carrying passengers or goods)
2. Any services in major port or dock.
3. Any postal, telegraph or telephone service.
4. Any industry which supplies power, light or water.

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5. Any system of public conservancy or sanitation.
6. Any industry specified in Ist schedule of this act.
Workmen are prohibited to go on strikes and employers are also prohibited to declare lock
out except after satisfying certain conditions.
Illegal strike and lock out :
No person employed in a public utility service shall go on strike and no employer carrying
any public utility service shall lock out without fulfilling following conditions (Sec 22 and 23
of this act) :-
1. Without giving six weeks notice before commencing strike.
2. Without 14 days of given such notice.
3. Before the expir of the date specified in such notice.
4. During the pendency of any conciliation proceedings before conciliation officer and 07
days after the conclusion of such proceedings.
5. During the pendenc or proceedings before a tribunal or national tribunal and 02 months
after the conclusion of such proceedings.
6. During the pendency of arbitration proceedings before an arbitrator and two months after
the conclusion of such proceeding, where a notification has been issued.
7. During any period in which a settlement or award is in operation in respect of any of the
matter covered by the settlement or award.
Penalty for illegal strikes and lockouts :-
1. Any workman who commences, continues or otherwise acts in furtherance of, a strike
which is illegal under this act, shall be punishable with imprisonment for a term which
may extend to one month or with fine which may be extended to fifty rupees or with both.
2. Any employer who commences, continues or otherwise acts in furtherance of, lockout
which is illegal under this act shall be punishable with imprisonment for a term which
may extend to one month or with fine which may be extended to one thousand rupees or
with both.
Penalty for Instigation etc. :-
Any person who instigates or incites other to take part in, or otherwise acts in furtherance of,
a strike or lockout which is illegal under this act, shall be punishable with imprisonment for a
term which may extend to six months or with fine which may extend to one thousand rupees,
or with both.
Penalty for giving financial aid to illegal strikes and lock outs :–
Any person who knowledgly expends or applies any money in direct furtherance or support
of any illegal strikes and lock outs shall be punishable with imprisonment for a term which
may extend to six months or with fine which may extend to one thousand rupees, or with
both.
Penalty for breach of settlement or award :-
Any person who commits a breach of any term of any settlement or award, which is binding
on him under this act, shall be punishable with imprisonment for a term which may extend to
six months, or with fine, or both and where the breach is a continuing one, with a further fine
which may extend to two hundred rupees for every day during which the breach continues
after the conviction for the first and the court trying the offence, if it fines the offender, may
direct that the whole or any part of the fine realised from him shall be paid, by way of
compensation, to any person who, in its opinion, has been injured by such breach.

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