FREQUENTLY ASKED QUESTIONS - THE INDUSTRIAL DISPUTES ACT, 1947: 1.

Which is the Appropriate Government for Central Public Sector Undertakings ? Ans: In the case of Air India Statutory Corporation of India Vs. United Labour Union, the Supreme Court held in its judgment dated: 06-10-1996 that all the Central Public Sector Undertakings were the instrumentalities of the Central Government and therefore, the Central Government would be the appropriate Government. However, the Constitution Bench of the Supreme Court in the case of Steel Authority of India Ltd. Vs. National Union Water Front Workers held in August, 2001 that the Central Government would not be the appropriate Government for all the Central Sector Undertakings. The Joint Secretary, Ministry of Labour, Government of India, New Delhi in its letter dated: 19-03-2002 clarified that the powers of the appropriate Government will be vested only with the State Governments for the Central Public Sector Undertakings. 2. Are the following activities are Industry Ans:i) i) Educational Institutions, ii) Research Institutions, iii) Municipal Corporations, iv) Hospitals. Educational Institutions: The Supreme Court in the case of Bangalore Water Supply and Sewerage Board Vs.A.Rajuppa, (1978 Lab IC 467) held that the education, in its institutional form, is an industry Research Institutions: Research Institutes, albeit run without profit motive, are industries (Bangalore Water Supply Case). Municipal Corporations: The Supreme Court in Corporation of City of Nagpur case evolved certain principles to determine whether a particular activity of a municipal corporation would fall within the definition of industry or not. A local authority may become an employer if it carries on an industry Hospitals: Hospital facilities, research products and training services are services and hence, industries.

ii) iii)

iv)

3. When an individual dispute becomes industrial dispute ? Ans: An individual dispute may become industrial dispute if it is taken up by a trade union or sufficient number of workmen. 4. What is the difference between lay-off and lockout and closure ? Ans: A lay-off generally occurs in a continuous business, whereas, lockout is a closure of business for the time-being. In the case of a lay-off, the employer is unable to give employment. In the case of a lock-out, the employer deliberately closes the business and locks out the whole body of workmen for reasons which have no relevance to the causes specified for lay-off. In the case of a lay-off, the employer may be liable to pay compensation. The liability of the employer in case of lockout would depend upon whether the lockout is justified and legal or not. A lockout is resorted to by the employer as a weapon

of collective bargaining. A lay-off is actuated by the exigencies of the business. A closure is the closing of the business permanently or temporarily for an indefinite period by the management. In case of closure, the employer is liable to pay compensation as if it is retrenchment. 5. Are Teachers workmen ? Ans: No, teachers do not come under the definition of workmen. 6. Can an individual workman, who is discharged or dismissed or terminated from service, make an application direct to Labour Court for adjudication of his dispute ? Ans: Yes. The A.P. Act 32 of 1987 enables the workman to make an application direct to the Labour Court for adjudication of his termination dispute. 7. Can an employer effect any change in the conditions of service applicable to any workman? Ans: Under no circumstances an employer can effect change in the conditions of service in respect of any matter specified in the IV Schedule without giving forty two days notice to the workmen of the proposed change. 8. Can there be voluntary reference of disputes to arbitration ? Ans: Section 10-A provides for voluntary reference of disputes to arbitration. 9. Is conciliation of industrial dispute mandatory ? Ans: Conciliation is mandatory in respect of disputes pertaining to public utility services, where a notice of strike under Section 22 has been given. 10. Is bilateral settlement between the management and union binding on all the workmen ? Ans: It is binding only on the parties to the agreement. 11. What is the period of operation of settlements ? Ans: A settlement shall come into operation on such date as is agreed upon by the parties to the dispute, and if no date is agreed upon, on the date on which the memorandum of the settlement is signed by the parties to the dispute. Such settlement shall be binding for such period as is agreed upon by the parties, and if no such period is agreed upon, for a period of six months. 12. Can workmen go on strike during the pendency of conciliation of proceedings in nonpublic utility services ? Ans: The workmen are not prohibited from going on strike during the pendency of conciliation of proceedings in non-public utility services.

13. Are workmen entitled to wages during strikes and lockouts ? Ans:- If the strike is illegal, workmen are not entitled to wages. If the strike is legal but not justified, again the workmen are not entitled to wages. So far as lock-out is concerned, the workmen would be entitled to wages if the lock-out is illegal. They would also be entitled to wages if it is unjustified though legal. 14. What is the compensation amount payable to laid-off workmen ? Ans: The laid-off workmen shall be paid compensation, which shall be equal to fifty percent of the total of the basic wages and dearness allowance. 15. What is the retrenchment compensation payable ? Ans: The retrenchment compensation shall be equivalent to fifteen days average pay for every completed year of continuous service. 16. Are prior permissions required from the Government for declaring lay-off, retrenchment and closure ? Ans: Chapter V-B prohibits lay-offs, retrenchments and closures in industrial establishments in which one hundred workmen are employed except with the prior permission from the Government. 17. How the dues of workmen are recovered from an employer ? Ans: Where any money is due to a workman from an employer under a settlement or an award or under the provisions of Chapter V-A or Chapter V-B, the workman himself or any other person authorized by him in writing can make an application under Section 33-C (1) to the appropriate Government for the recovery of the money due to him. Where any workman is entitled to receive from the employer any money or any benefit which is capable of being computed in terms of money and if any question arises as to the amount of money due or as to the amount at which such benefit should be computed, then the question may be decided by the Labour Court under Section 33-C (2). 18. How many workmen should be recognized as protected workmen ? Ans: In every establishment, the number of workmen to be recognized as protected workmen for the purposes of Section-33 (3) shall be one percent of the total number of workmen employed therein subject to a minimum number of five protected workmen and a maximum number of one hundred protected workmen.