The Industrial

Disputes Act, 1947

Vijayarajan,
Skill Zone, Kannur.

Mob: 9447014166
Applicability? (Jurisdiction)
Extends to whole of India [Sec 1(2)]
Date of effect?
The ACT came into force on the first
day of April, 1947.[Sec 1(3)]
How many Sections and Schedules?
81 Sections and 5 Schedules.
 Important Definitions
Appropriate Government [sec 2(a)]

Industries fall under central or state labour

machinery. Sec. 2(a) helps us to determine
under whose jurisdiction a particular industry
falls and whether the state/central rules will
apply.
As per S.O.556(E) dated 3rd July 1998 the
Govt. of India has delegated the functions
of the central govt. to state govts.
Industry [2(j)]---The 1984 amendment now
appearing in most of the books has not been
brought into force.
“Industry” means any business, trade,
undertaking, manufacture or calling, service,
employment, handicraft, or industrial
occupation or avocation of workmen.
3 Way Test
Cooperation between employer
and employee.
Systematic activity.
Satisfy the human wants or
needs.
Workmen [2(s)] –All employees in an estt are
not workmen under the I D Act.
Employees doing any manual, unskilled, skilled,
technical, operational, clerical work irrespective of their
salary.
Supervisors drawing wages less than 1600/-
Managers are totally excluded irrespective of their salary.
Wages [Sec 2(rr)]

Basic, D A, Value of house accommodation,

traveling concession, commission and or other
remuneration payable under the contract .
Bonus, retirement benefits etc. are not wages
Industrial Dispute [Sec 2(k)]

Employer vs Employer
Employer vs Workmen
Workmen vs Workmen
The subject matter of the dispute should be
connected with a) employment or non employment;
b) terms of employment,
c) conditions of labour.
Dispute must be raised by workmen ( union or group of
workmen)
Individual worker raising I D

Sec 2A.
Cases of Dismissal, Discharge,
Retrenchment, or Termination.
For no other issues an individual
workman is not permitted to
raise a dispute under the ID
Act,1947.
AUTHORITIES UNDER THIS ACT

Works Committee
Conciliation officers
Boards of Conciliation
Courts of Inquiry
Labour Courts
Tribunals
National Tribunals

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Works Committee

Where?: Establishments with 100 or

more workers
Members: Equal number of
representatives of the Employer and
Employees
Objective: promotion of good
relationship between employer and
employee(s)
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 Works Committees
Establishments which employ more than 100 workmen
shall set up works committees if the Govt. through a
general or special order requires to do so. [Sec. 3(1)
&(2).
Membership shall be equal for employer and workmen.
[Sec.3(1)]
Workmen representatives shall be elected and
management representatives can be nominated [Rule 40]
The committee once set up will have 2 years term. Mid
term vacancies will be filled as per Rule 52.
The Govt. have delegated the power to issue orders to
various officers of the Labour dept. [GO(MS) 76/87/LBR
dated 18-12- 1987.SRO No.1719/87]
Conciliation officers
Appointed by the appropriate
Government
Duty: Settlement of industrial disputes.
Nature : Appointed for a specified area
or for specified industries in a specified
area or for one or more specified
industries and either permanently or for
a limited period.

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Duties of Conciliation
Officer
As per sec 12(1) and rule 9(1) when a
strike/lockout notice is issued in a
public utility service the conciliation
officer is bound to convene immediate
conciliation meeting.

contd………
 Duties of Conciliation
officer……
If he succeeds in bringing out an understanding he gets the
parties to sign a settlement in Form H (under rule 58 (1) and
make necessary entries in the register in Form O and sent a
copy to the Govt.[Sec12(3) Rules 58(1),(3)&75.]
If he fails to bring about a settlement, he has to bring the fact
to the attention of the Government under Sec 12(4).
Conciliation process should be closed within 14 days.
contd………….
Duties of Conciliation Officer…..

When notice of change is issued

under Sec 9A he is obliged to
hold meetings to resolve the
dispute.
Powers of Conciliation Officer

Enter and inspect [Sec 11(1)]

Summon any person as witness or compel
the production of document [Sec 11(4)
and rule 17]
Grant/Refuse approval/permission to petition
filed by employer on disciplinary matters
during pendency of conciliation before him.
 Pendency of Conciliation
Commencement.
When notice of strike/lockout in public utility service is
received by the conciliation officer.
The date on which the dispute is referred to the conciliation
board.
When the conciliation officer issues notice of conciliation.
Conclusion.
When the settlement is signed by the parties.
When the failure report is received by the Government.
[Sec.20(1)(2)(a,b).
Boards of Conciliation

Appointed by the appropriate Government as

occasion arises for settlement of disputes.
Board shall consist of an independent
Chairman and two or four other members in
equal numbers to represent the parties to the
dispute

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Adjudication

Authorities.
Labour Courts [Sn 2(kkb),7,Sch II ]
Tribunals [Sn.2(r) 7A, Sch.III ]
National Tribunals [Sn.2(11), 7B,
Sch.III ]
Labour Courts

Labour Courts are constituted by the

appropriate Govt. for the adjudication of
industrial disputes relating to any matter
specified in the Second Schedule and for
performing such other functions as may be
assigned to them under this Act.

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Tribunals

Tribunals are constituted by the appropriate

Govt. for the adjudication of industrial disputes
relating to any matter specified in the Second
Schedule or the Third Schedule and for
performing such other functions as may be
assigned to them under this Act.

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Matters within the Jurisdiction of
Labour Courts (the II Schedule)
1.The propriety or legality of an order passed by an
employer under the standing orders;
2.The application and interpretation of standing order;
3.Discharge or dismissal of workmen including re-
instatement of, or grant of relief to, workmen
wrongfully dismissed;
4.Withdrawal of any customary concession or
privilege;
5.Illegality or otherwise of a strike or lock-out; and
6.All matters other than those specified in the Third
Schedule.

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Matters within the Jurisdiction of
Industrial Tribunals (the III schedule)

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;

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 III schedule
(contd.)
7.Classification by grades;
8.Rules of discipline;
9.Rationalisation;
10.Retrenchment of workmen and closure of
establishment; and
11.Any other matter that may be prescribed.

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Duties of Adjudication
Machinery
To complete the adjudication
proceedings and submit the
report within the time. (Sn.15,
10(2A).
To restrict the scope of their
judgment to the points
referred to them.[Sn.10(4).]
 Powers of Adjudicators.
They can enter any establishment for fact
finding.[Sn.11(2) and Rule 23.)
Can enforce attendance of any person and
production of documents [Sn. 11(3),Rules 10A,
10B.]
Empowered to administer oath and issue
summons to parties and witnesses
[Ru.16,17,18.]
Contd……….
 Powers Contd………

Can appoint assessors to assistance

[Sn 11(5), Rule-25]
Can pass orders awarding cost to the aggrieved
party [Sn 11(7).]
Review punishments and can reduce/ substitute
punishments.[Sn.11A.]
Can pass orders on money claim petitions filed by
workmen against employers [Sn. 33C(2)]
Take decisions on petitions filed under Sec.33.
[Sn.33A]
Can employer or workman
directly
approach
No. for adjudication?
Unlike civil courts, parties cannot
approach the adjudicating officer. The
disputes have to be referred to the
adjudicating officer by the Government.
[Sn.
10(1),10(1A),10(2),10(6),12(4),12(5),12(6).
Arbitration
When conciliation fails, and if the parties wish
to refer the issue for arbitration, both the sides
shall sign an arbitration agreement in Form C
under Rule 7 and send it to Government. The
Government will then appoint an arbitrator.
[Sn.10(2),10A.]
Arbitration award is implemented like an
adjudication award.
Pendency of Proceedings

The period from which the

conciliation/adjudication/arbitration
proceedings commences and
concludes under Sec 20 is called
period of pendency.
 Pendency of
Adjudication [Sec.20(2)
(C)20(3)and17]
Adjudication / arbitration proceedings are
deemed to commence on the date when
the Govt. refers the dispute to the
authorities under Sec. 10 or 10(A).
Adjudication / arbitration proceedings are
deemed to have concluded on the date on
which their awards become enforceable.
Impact of Pendency
Any strike / lockout in any public utility industry
during the pendency of conciliation and seven
days thereafter would be illegal. [ Sn.22(d)].

Any strike / lockout in a non public utility

industry during the pendency of conciliation
before a board or thereafter would be illegal.
[Sn.23(a)]
contd….
Impact of Pendency contd…
During the pendency of proceedings, the
employer shall not make any alteration of any
matter connected with the dispute without the
written permission of the authority before whom
the dispute is pending. For this purpose
application has to be made in Form J. [Sn.33(1)
(a),Rule60(1).

Contd……..
 Impact of Pendency contd….
During the pendency of proceedings any disciplinary
punishment for misconduct connected with the
dispute can be taken only with the written permission
of the authority before whom the dispute is pending.
[Sn.33(1)(b).Rule 60(1) Form J.]
For taking action for anything not connected with the
pendency ratification has to be obtained[sn.33(2)
(b)Rule 60(2)Form K.] If not approved the workman
will have to be reinstated with back wages.
Contd….
Impact of Pendency contd…
Trade union office bearers who qualify the status of
‘Protected workmen’ should not be punished or
terminated without prior permission from the
authority during this period [Sn.33(3) Rule 60(1)
Form J]
If the employer violates these provisions the
aggrieved workman can file complaint before the
authority in Form I. The authority shall pass orders
after hearing the parties. [Sn. 33A, Rule 59]
Note:- Even if the approval is granted the worker is
not barred from raising dispute under section 2(k) or
2A.
Courts of Inquiry

Constituted by the appropriate Government as

occasion arises for inquiring into any matter
appearing to be connected with or relevant to
an industrial dispute

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National Tribunals

National Tribunals are constituted by the

Central Government 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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 Strike Vs Lockout
By workmen By employer
Refusal to work or accept Temporary closure
employment.
Refusal to continue to
Under common employ the persons
understanding or acting in employed.
concert.
[Section 2(l).
[Section 2q]
Illegal Strikes / Lockouts
In Public Utility Service [Sn.22(1)and(2),23,30,19]
Without giving 14 days notice.
Commenced after 42 days of notice.
Prior to the date indicated in the notice.
During the pendency of proceedings
During the period when a settlement or award is in
operation on same matters.
In non PUSs
a) in breach of contract ,b) during the pendency of
proceedings, c) during the settlement or award is in
operation.[Sn.23,20,19]
In both the strike / lockout will be illegal if continued after
Govt. banning.[Sec.10(4A),24]
LAY-OFF AND
RETRENCHMENT
No workman (other than a badli workman or a
casual workman) whose name is borne on the
muster-rolls of an industrial establishment
wherein 50 or more workers are employed
shall be laid-off by his employer except with the
prior permission of the appropriate
Government.

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Procedure for retrenchment
and re employment
Retrench the last worker appointed under a
particular category first

For re-employment, retrenched worker shall

have preference over other persons

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Layoff
Layoff provisions are applicable only
to category of industries like
factories, mines and plantations
which employs more than 50
employees. If the establishment is of
seasonal character lay off provisions
will not apply.[Sec. 25A(b) and
25(K).
Layoff Compensation
Fifty percent of Basic+ DA.[Sec.25( c)]
In case permission is not obtained/refused full
wages. [Sec 25 (M) (8).
If the employee refuse to accept alternative
employment under the same employer within a
radius of 5 Miles the worker is not eligible for any
compensation.[Sec.25(E)(1).
If not reported for attendance no compensation.
[Sec.25(E)(2).
If lay off is due to strike or go slow by another section
of the unit, No compensation [Sec.25(E)(3).]
 Procedure to apply for
Layoff permission
Establishments covered under
Section VB shall make application to
appropriate Govt. in Form 03.
[ Sn.25(M) and Rule 75A]
Govt. may grant / refuse permission
within 60 days. If no reply is received
within 60 days permission can be
assumed. [Sec.25(M)(5)]
 Retrenchment
One month notice or one months pay in lieu of
notice should be given in smaller (employing less
than 100 employees) establishments [Sec. 25F(a)]
Three months notice or three months pay should
be given in larger (employing more than 100
employees) establishments.
[Sec.25N (1)(a).]
 Retrenchment Compensation
Eligible for 15 days wages for every completed year
or part in excess of six months.
[Sec.25N(9),25F(b),25B(1) & (2)]
If standing order or other laws permits anything
higher it will prevail [Sec.25J(1)]
In smaller (less than 100) estts., if the layoff
exceeded 45 days during the immediate preceding
12 months, the lay off compensation can be offset
from the retrenchment compensation payable to the
workmen. [Proviso to Sec. 25C.]
 Right of the Retrenched
Workmen
If at any later date the plant or process is restarted, the
retrenched workmen should be given preference for
reemployment and intimation given to the workmen and
union and a notice should be exhibited at least 10 days
before filling up the vacancy [Sec.25H,Rule 78]
Any provision on retrenchment in any other law or standing
orders( except those are more beneficial) shall be null and
void [Sec. 25 J]
 Closure
A permanent closure of (a) a place of employment, or (b)
a part of establishment [Sec.2 (cc).]
No permission required in smaller estts. [Sec.25K]
Where Permission is required ,application should be
submitted (in the case of factories, mines and
plantations) to the Govt. with copy to the Union at least
90 days in advance. [Sec 25(O)(1)]
If no reply is received within 60 days permission can be
assumed [Sec.25(O)(3).]
 Notice of Change
Items given in schedule IV shall not be changed or
altered without giving notice [Sec.9A]
Notice should be given at least 21 days in advance. If
the change is a result of an agreement no notice is
required. [Sec.9A(b)]
The notice must be given Form E [Rule 34]
If the workmen / union doesn't object, the change ca be
effected after 21 days. [Sn 9A(1)]
If objected employer has to wait till conciliation /
adjudication is over. [Sec. 33(1).]
The Govt. can exempt any estt from this provision
[Sec.9B]
Claims
Any money due to a workmen under a
settlement or award and any other
compensation [Sec 33C]
Should be filed within one year [first
proviso to Sec 33C(1)]
Can be condoned on valid reasons [ Sec
33(C )(2) proviso 2]
Representation of Parties
Advocates are prohibited from appearance.
[ Sec.36(3)]
However advocates can be permitted on mutual consent.
[ Sec.36(4)]
A co worker, any union official can represent a workman.
[Sn.36(1),(a),(b),(c )]
Officer of an association of Employers. [Sn. 36(2)(a)(b)(c )]
 Settlements
Bipartite settlements. Binding only on the parties who
have signed. It is not enforceable on others. [Sec.
18.]
Tripartite settlements under Sec. 12(3) are
enforceable to……….
1..all parties to the dispute.
2..all parties summoned to the conciliation
3..in the case of employer on his successors etc.
4..in case of workmen on all workmen on the rolls
on the date and all future employees.
 Operation of Settlement
From the date agreed or if the date is silent from the
date of signing.[Sec.19(1)]
For a period of 6 months if no date is specified, or for
a longer period indicated in the settlement.
[Sec.19(2)]
Obligations continue beyond the agreed period and
will continue till proper notice of termination is given
under Sec. 19(2).As per judicial decisions the terms
shall continue even after termination till another
agreement is reached.
Notice of Termination of
Agreement.

A party representing the

majority of persons bound by
the settlement can issue a
valid notice of termination of
agreement.[Sec.19(7)].
UNFAIR LABOUR PRACTICES
On the part of employers
threatening workmen with discharge or dismissal,
if they join a trade union
threatening a lock-out or closure, if a trade union
is organised
granting wage increase to workmen at crucial
periods of trade union organisation, with a view to
undermining the efforts of the trade union at
organisation
an employer taking an active interest in organising
a trade, union of his workmen

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 Unfair-employer
(contd.)
To establish employer-sponsored trade unions of
workmen
discharging or punishing a workman, because he
urged other workmen to join or organise a trade
union
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)
changing seniority rating of workmen because of
trade union activities

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 Unfair-employer (contd.)
refusing to promote workmen to higher posts
on account of their trade union activities
giving unmerited promotions to certain
workmen with a view to creating friction
amongst other workmen, or to undermine the
strength of their trade union
discharging office bearers or active members
of the trade union on account of their trade
union activities

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 Unfair-employer
(contd.)
To discharge or dismiss workmen –
by way of victimisation;
by falsely implicating a workman in a criminal
case on false or fabricated evidence;
on untrue allegations of absence without leave;
in utter disregard of the principles of natural
justice in the conduct of domestic enquiry or with
undue haste;
for misconduct of a minor or technical character,
without having any regard to the nature of the
particular misconduct or the past record of service
of the workman.

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 Unfair-employer
(contd.)
To abolish the work of a regular nature being done
by workmen, and to give such work to contractors
as a measure of breaking a strike.
To transfer a workman mala fide from one place to
another, under the excuse of following
management policy.
To insist upon individual workmen, who are on a
legal strike to sign a good conduct bond, as a
precondition to allowing them to resume work.

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 Unfair-employer
(contd.)
To show favoritism or partiality to one set of workers
regardless of merit.
To employ workmen as "badlis" casuals or
temporaries and to continue them as such for years,
with the object of depriving them of the status and
privileges of permanent workmen.
To discharge or discriminate against any workman
for filing charges or testifying against an employer in
any enquiry or proceeding relating to any industrial
dispute.

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 Unfair-employer (contd.)

To recruit workmen during a strike which is not

an illegal strike.
Failure to implement award, settlement or
agreement.
To indulge in acts of force or violence.
To refuse to bargain collectively, in good faith
with the recognised trade unions.
Proposing or continuing a lock-out deemed to be
illegal under this Act

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VIJAYARAJAN
UNFAIR LABOUR PRACTICES
On the part of workmen
advise, support or instigate any strike deemed to
be illegal under this Act.
coerce workmen to join a trade union or refrain
from joining any trade union,
picket in such a manner that non-striking workmen
are physically debarred from entering the work
places
indulge in acts of force or violence or intimidation
in connection with a strike against non-striking
workmen or against managerial staff

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 Unfair- workman (contd.)
For a recognised union to refuse to bargain
collectively in good faith with the employer.
To indulge in coercive activities against
certification of bargaining representative.
To stage, encourage or instigate such forms of
coercive actions as willful "go slow", squat on the
work premises or "gherao" of any of the members
of the managerial or other staff.
To stage demonstrations at the residences of the
employers or the managerial staff members.

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 Unfair- workman (contd.)

To motivate or indulge in willful damage to

employer's property.
To indulge in acts of force or violence or to
hold out threats of intimidation against any
workman with a view to preventing him from
attending work.

12/30/09 6565
VIJAYARAJAN
 THANK YOU
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Vijayarajan,
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Skill Zone,
Kannur
Mob 9447014166
12/30/09 6666