INDUSTRIAL DISPUTES ACT, 1947

INDUSTRIAL DISPUTES ACT, 1947

Compiled by N. Chidambaram

PRELUDE

Industrial Disputes Act, 1947 is a piece of social
legislation

Enacted to provide for investigation and
settlement of industrial disputes

Compiled by N. Chidambaram

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 SCOPE

Applicable to all states of India

To all industrial and commercial establishments
employing technical and non-
non-technical workmen
drawing Rs.1600 p.m.

Compiled by N. Chidambaram

OBJECTIVES OF THE ACT

To ensure social justice to both employees and
employers and advance progress of industry by
bringing about harmony and cordial relationship
between the parties.

To prevent illegal strikes and lockouts.

To provide compensation in cases of lay-
lay-off,
retrenchment, and closure.

To promote collective bargaining.

To terminate disputes in a peaceful manner.

Compiled by N. Chidambaram

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 INDUSTRY

Any business, trade, undertaking, manufacture
or calling of employers and includes any calling,
service, employment, handicraft or industrial
occupation.

Compiled by N. Chidambaram

INDUSTRIAL DISPUTE (Sec 2k)

Any dispute or difference between employers
and employer or between employers and
workmen and between workmen and workmen,
which is connected with the employment or non-
non-
employment or with the terms of employment or
with the conditions of labor, of any person.

Compiled by N. Chidambaram

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 Machinery for prevention and settlement of I D

Setting up of works committees in

establishments employing 100 or more persons
with equal number of representatives of workers
and management. Its duty is to promote and
preserve amity and cordial relationship between
employer and workmen.

Prohibition of changes in the conditions of

service in respect of matters laid down in the
fourth schedule of the Act
Compiled by N. Chidambaram

Prohibition of strikes and lock-

lock-outs in a public
utility service
a) Without giving notice to other party within six
weeks before striking or locking out
b) Within 14 days of giving such notice

Compiled by N. Chidambaram

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Prohibition of unfair labour practices

Requiring employers to obtain prior permission
of the authorities concerned before whom
disputes are pending for conciliation, arbitration
and adjudication, for changing working and
employment conditions, or for dismissal or
discharging employees and their union leaders.

Compiled by N. Chidambaram

Regulation of lay-
lay-off and retrenchment and
closure of establishment: requires employers
to
a) Pay lay-
lay-off compensation to employees for the
period of lay-
lay-off @ 50% of salary or wages
b) Give one month notice and also pay
compensation @ 15 days wages for every
completed year of service for retrenchment
and closure of establishments

Compiled by N. Chidambaram

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 Settlement of I D

I D which are not prevented or settled by
collective bargaining or Works committee or
Bipartite negotiation the following authorities
are provided for resolving;

Conciliation officer and Board of conciliation

Voluntary arbitration

Adjudication by labor court

Compiled by N. Chidambaram

Conciliation

A process by which representatives of
management and employees and their union
are brought together before a third person with
a view to persuade them to arrive at some
agreement to their satisfaction and in the larger
interest of the industry and community as a
whole.

Conciliation proceeding are obligatory in case of
public utility services.

Compiled by N. Chidambaram

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 Board of Conciliation

Higher forum constituted for solving a dispute
but not a permanent one.

Government constitutes this as occasion arises
with an independent chairman and equal
number of representative members.

It investigates the dispute and should facilitate
the right settlement.

On settlement it has to submit a report to the
government.

Compiled by N. Chidambaram

Voluntary Arbitration

When conciliation process fails to resolve the
dispute, parties can be advised to agree to
voluntary arbitration.

Based on panchayat system.

Parties should submit a written agreement
mentioning the person acceptable to them as
arbitrator and the issues for arbitration, signed
by both.

Compiled by N. Chidambaram

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 Adjudication

A compulsory method of resolving conflicts.

Machinery for adjudication is – Labour courts,
Industrial Tribunals and National Tribunals.

Procedures and their powers are one and the
same.

LC and IT are constituted by state government
whereas NT is by central government.

Presiding Officers (One High court judge)

Compiled by N. Chidambaram

LC – deals with I D specified in the second

schedule of the Act (appendix III)

IT - deals with I D specified in the third schedule
of the Act (appendix IV)

NT - deals with any I D specified in the second
and third schedule of the Act or any matter
which is not specified therein.

Compiled by N. Chidambaram

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 Power of L C and I T

Every investigation by these authorities is
deemed to be a judicial proceeding.

They have power to substitute their decision for
the decision of the employer.

Empowered to determine as to who, to what
extent and to whom the cost of proceedings
before them are to be paid.

Empowered to compel the production of
documents and material objects for
examination.
Compiled by N. Chidambaram

Strikes [sec 2 (q)]

It means a cessation of work by a body of
persons employed in any industry acting in
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

Compiled by N. Chidambaram

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 Lockouts [sec 2(I)]

The 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 employed by him.

Compiled by N. Chidambaram

Employees has no fundamental right to resort to

strike

Compiled by N. Chidambaram

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 General prohibitions on strike

Not allowed in the following situations

When conciliation is going on before the Board
and seven days thereafter

When adjudication is going on before a labor
court and two months thereafter

When and if an appropriate government
prohibits

When a settlement or award is in operation

Compiled by N. Chidambaram

Strikes, Lockouts and Wages

Law says nothing during that period. But
decisions of tribunals are

Illegal strikes – wages – no

Illegal lockouts – wages – yes

Legal and justified strikes – sometimes

Legal and unjustified strikes – no

Compiled by N. Chidambaram

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ESMA empowers central government to prohibit
any and all strikes, lockouts in any essential
service, if this is considered necessary in the
public interest.

ESMA overrides all other laws in case of conflict.

Compiled by N. Chidambaram

Retrenchment

The termination by the employer of the service
of a workman for any reason whatsoever other
than a punishment inflicted by way of
disciplinary action.

Voluntary retirement, termination of
employment on grounds of ill health, do not
amount to retrenchment.

Compiled by N. Chidambaram

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