By Prof. S.K.

Chopra
 Objectives of the Act
 To secure industrial peace and harmony by
providing machinery and procedure for the
investigation and amicable settlement of
industrial disputes by negotiations instead of
by trial of strength through strikes and lock
outs.
 This legislation is calculated to ensure social
justice to both employers and employees and
thereby promote industrial progress.
 Oxford English Dictionary defines an
industry as a diligent or systematic activity.
 So, any activity systematically undertaken for
the production or distribution of goods or
for rendering material service to the
community at large with the help of
employees comes under “Industry”.
 Any productive activity in which an individual
(or a group of individuals) is (are) engaged.
 Industry is the production of goods or
related services within the economy.
 Definition of Industry as per {Section
2(j)] of I.D. Act, 1947}
 “ Industry” means any business,
trade, undertaking, manufacture or
calling of employers and includes any
calling, service, employment,
handicraft, or industrial occupation or
avocation of workmen.
 The Hon’ble Supreme Court in its landmark
judgment in Bangalore Water Supply & Sewerage
Board Vs. A. Rajappa (1978) AIR 548 (SC) widened
the scope of the term “Industry” which covered
professions like those of lawyers, etc., clubs,
educational institutions like universities, research
institutes, co-operatives, charitable projects and
other kindred adventures as they are being carried
on as systematic activity organised by cooperation
between employer and employee for the
production and/or distribution/supply of goods
and services calculated to satisfy human wants and
wishes not merely spiritual or religious.
 The term industry has been given a wide scope and
the judgment overruled several earlier decisions.
 As per aforesaid judgment:-
 Any activity will be industry if it fulfills the ‘triple
test’, as under:
 1. Systematic and organized activity with the
cooperation between employers and employees for
the production and distribution of good and
services.
 2. It is immaterial whether or not there is profit
motive or whether or not there is capital.
 3. If the organization is a trade or business, it does
not cease to be one because of philanthropy animating
the triple test, cannot be exempted from scope of
definition of industry.
 On the enforcement of Clause (c) of Section 2 of Act 46
of 1982, Clause (j) shall stood substituted as under
w.e.f. 21.8.1984. vide Notification No: S.O. 606 (e) dated
August 21, 1984.
 “Industry" means any systematic activity carried on by
co-operation between an employer and his workmen
(whether such workmen are employed by such employer
directly or by or through any agency, including a
contractor) for the production, supply or distribution of
goods or services with a view to satisfy human wants or
wishes (not being wants or wishes which are merely
spiritual or religious in nature), whether or not,
 (i) any capital has been invested for the purpose of
carrying on such activity; or
 (ii) such activity is carried on with a motive to make any
gain or profit, and includes:
 (2) hospitals or dispensaries; or
 (3) educational, scientific, research or training
institutions; or
 (4) institutions owned or managed by organisation wholly
or substantially engaged in any charitable, social or
philanthropic service; or
 (5) khadi or village industries; or
 (6) any activity of the Government relatable to the
sovereign functions of the Government including all the
activities carried on by the Departments of the Central
Government dealing with defence research, atomic energy
and space;
 (7) any domestic service; or
 (8) any activity, being a profession practiced by an
individual or body of individuals, or
 (9) any activity, being an activity carried on by a co-
operative society or a club.
 The exceptions to industry are-
 Casual activities (because they are not systematic).
 Small clubs, co – operatives, research labs, Gurukuls
which have an essentially non employee character.
 Single door lawyer taking help from clerk (because
there is no organized labour).
 A legal consultant firm employing two law graduates
stenographer and a peon is an industry
 Selfless charitable activities carried on through
volunteers e.g. free legal or medical service.
 Sovereign functions – strictly understood, i.e.,
maintenance of law and order, legislative functions
and judicial function
 Charitable Institutions
 These fall into three categories –
 (a) Those that yield profit, but the profits are not
siphoned off for altruistic purposes;
 (b) Those that make no profit but hire the service of
employees as in any other business, but the goods/
services which are the output, are made available at a
low or no cost to the indigent poor; and
 (c) Those that are oriented on a humane mission
fulfilled by men who work, not because they are paid
wages, but because they share the passion for the
cause and derive job satisfaction.
 The first two categories are industries, but not the
third, on the assumption that they all involve co-
operation between employers and employees
 Therefore, a charitable hospital run by a
private trust, offering free services and
employing a permanent staff is an industry as
there is a systematic activity, a co – operation
between employer and employees and
rendering of services which satisfies human
wants and wishes.
 Further, the services of employees are hired
as in any other business.
 Ram Prasad & Others Vs. State of Rajasthan &
others (1993) XXIV LLR 59 (Raj.)
 It was held that the State Insurance , Provident
Fund Departments of the Government have
been held to be an “Industry”
 Further, the Godowns of Food Corporation of
India (FCI) have been held to be an ‘Industry’.
 Citation: F.C.I. Workers’ Union & Anr. Vs. Food
Corporation of India & Ors (1993) XXIV LLR 24
(Cal.)
 Section 2(s): 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 whether the terms of
employment be express or implied and there
should be a contractual relationship between
master and servant and for the purposes of
any proceeding under this Act in relation to
an industrial dispute, includes any such
person who has been dismissed, discharged
or retrenched in connection with, or as a
consequence of, that dispute, or whose
dismissal, discharge or retrenchment has led
to that dispute,
 but does not include any such person,
 (i) who is subject to the Air Force Act, 1950 or the
Army Act, 1950 or the Navy Act, 1957 or
 (ii) who is employed in the police service or as an
officer or other employee of a prison; or
 (iii) who is employed mainly in a managerial or
administrative capacity; or
 (iv) who, being employed in a supervisory capacity,
draws wages exceeding Rs. 10000 per month* 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. (*Amended in 2010).
 Apprentice is a workman- UP Awas Evam Vikas Parishad
v. Labour Court II, Kanpur, 2004 LLR 432.
 Manual: Any work which predominantly requires some
physical exertion on the part of the person e.g. Helper,
Mazdoor.
 Unskilled: A work which is mundane and does not involve
application of any special knowledge e.g. Sweeper,
Cleaner
 Skilled: Practical and special knowledge combined with the
ability to apply them with dexterity e.g. Electrician,
Carpenter, Welder
 Technical: Application of scientific or technical knowledge.
 Operational: Work involving operation of some
machine/device. E.g. Technician.
 Clerical: Desk Jobs
 Supervisory for example the power to sanction leave to any
of the workmen working under him or to take disciplinary
action against them.
 Citation: Haryana Unrecognized Schools Vs.
State of Haryana on 12.4.1996
 Equivalent citations: 1996 AIR 2108, 1996
SCC (4) 225
 Though Educational Institutions is an Industry, teachers
employed by such Institutions cannot be called
“workmen” irrespective of the fact whether such
Institutions are imparting primary, secondary, Graduate
or Post-Graduate education.
 In order to be a workman, an employee should be
employed to do any skilled or unskilled, manual,
supervisory, technical or clerical work; imparting of
education which is the main function of the teacher, does
not fall under any of the categories of work stated above.
 Citation: Miss A. Sundarambal Vs. Govt. of Goa, Daman &
Diu and others (1989) I LLJ 61 (SC).
 Citation: Haryana Unrecognized Schools Vs. State of
Haryana on 12.4.1996
 Equivalent citations: 1996 AIR 2108, 1996 SCC (4) 225
 Similarly, the functions of a research fellow
are purely academic in nature, and he
cannot be regarded as a workman.
 Citation: Jamia Hamdard & Ors Vs. K.S.
Durrany (1992)I LLJ 874 (Del.)
 The designation of an employee is not the
criterion to determine the status of an
employee as to whether he is a workman or
not.
 The test is the nature of duties of an
employee.
Section 2(k) of I.D. Act, 1947:
An ‘industrial dispute’ means any
dispute or difference between
employers and employers, or between
employers and workmen, or between
workmen and workmen, which is
connected with the employment or
non-employment or the terms and
conditions of employment of any
person.
 The Hon’ble Supreme Court held that an ‘industrial
dispute’ must necessarily be a dispute in an
Industry if it has 3 ingredients:
 i) there should be real and substantial dispute or
difference;
 ii) the dispute or difference between employers
and/or workmen;
 iii) the dispute or difference must be connected
with the employment or non-employment or terms
of employment, or with the conditions of labour of
any person.
 Citation: Workmen of Indian Standards Institution
vs. Management of ISI, AIR 1976 SC 145.
 Besides, all disputes relating to matters specified in
Schedule II and III shall also constitute industrial
dispute
 In order for a dispute to be industrial, it is essential
that it either related to the employment or the
conditions of employment or on some general
question which involves the community of interest of
the workmen. The element of collective dispute is
essential to constitute an industrial dispute.
Therefore, each party must have substantial interest
in the same.
 The term industrial dispute connotes the existence
of a real dispute which would persist if not solved or
is likely to endanger industrial peace of the
undertaking.
 Whether justified or not; is not, a primary
consideration for a dispute to be termed as
industrial dispute.
 A dispute is said to have arisen when some demand is
made by workmen and it is rejected by the management
or vice versa, and the demand is related to employment.
 However, it is pertinent to note that a dispute between
an employer and single workman does not fall within
the definition of ‘industrial dispute’, but if the workmen
as a body or a considerable section of them make a
common cause with the individual workman then such a
dispute would be an industrial dispute.
 Furthermore, it is necessary that there has been a
demand and there has been a refusal.
 It is no where necessary that an industrial dispute has
to be raised by a recognized trade union or a majority
trade union.
 Section2-A
 (1) Where any employer discharges, dismisses,
retrenches, or otherwise terminates the services of
an individual workman, any dispute or difference
between that workman and his employer connected
with, or arising out of, such discharge, dismissal,
retrenchment or termination shall be deemed to be
an industrial dispute notwithstanding that no other
workman nor any union of workmen is a party to the
dispute.
 Since the Act applies even to Industrial
Establishments employing a single workman.
 A dispute arising between a workman and
employer if espoused by a body of workers
assumes the nature and character of an
industrial dispute.
 Citation: Newspaper Ltd. Vs. State Industrial
Tribunal UP and others AIR 1957 SC 532.
 Thus, an ‘industrial dispute’ is a collective
dispute supported by either a trade union or
a substantial number of fellow workers. The
word collective does not mean substantial
majority.
 Ratio: Workmen can raise a dispute only when
the person in respect of whom the dispute has
been raised and the workmen has a substantial
interest which is direct in nature.
 In this case Dr. Banerjee was appointed as a
Medical Officer on three months probation at the
end of which he was suspended on grounds of
incompetency. Can the doctor be termed as a
workmen?
 The Word used in the definition clause is any
person. Can this be interpreted in order to
include any workman? There is a substantial
dispute: the termination of Dr. Banerjee.
 The interpretation of labor legislations have to be
done keeping in mind the broad object of the act.
The Medical officer’s employment or non-
employment does not have a direct or substantial
interest on the rest of the workers. In this case, the
employer was in no position to give relief to the
doctor and he belonged to a different class of
employee (medical or technical Staff).
 But dispute in relation to a person who is not a
‘workman’ within the meaning of the Act is not an
industrial dispute under Section 2(k).
 Citation: Workmen of Dimakuchi Tea Estate Vs. The
Management of Dimakuchi Tea Estate (1958) 1 SCR
156
 Appropriate Govt:
 Industrial disputes in relation to any industry owned
or controlled by the Central Government, Railways,
any ‘controlled industry’, Statutory Corporations, air
transport service, banking and insurance companies,
mines, oil fields, major ports, cantonment boards,
companies wherein 51% or more share capital is held
by Central Govt:, Corporations, PSUs & autonomous
bodies established, owned or controlled by Central
Govt: are dealt with by the Central Govt:, whereas all
other industrial disputes are the concern of the State
Government.
 Disputes between a Contractor and
the contract labour employed through
it in an industrial establishment shall
be dealt by the Central/State Govt.
having control over such industrial
establishment.
 Section 2(a) as amended by Industrial
Disputes (Amendment) Act, 2010 w.e.f
15.9.2010.
 The Act provides following authorities and vests in
them necessary powers to investigate the dispute
and to bring about settlement of such disputes
arising between the employees and employers:-
(i) Works Committee (WIPM)
(ii) Grievance Redressal Committee
(iii) Conciliation Officers;

For Adjudication:
(i) Labour Courts;
(ii) Industrial Tribunals;

(iii) National Tribunal.

 As per Section 3 of The I. D. ACT, 1947, where
more than 100 workers are employed, Works
Committees are to be set up comprising
representatives from both the management and
workers.
 Works Committee is constituted from Employer &
Employee Representatives from technical,
managerial & supervisory cadres for a Tenure of 2
years.
 President (Employer Representative)
 Vice President (Employee Representative)
 Secretary
 Joint Secretary
 On the basis of decisions of the 17th Session of
the Indian Labour Conference, 1959,
 the following illustrative lists of items were
approved keeping it flexible in approach:-
 1. Working conditions, such as ventilation,
lighting, temperature and sanitation including
wash rooms
 2. Amenities, such as drinking water, canteens,
dining rooms, crèches, rest rooms, medical &
health services
 3. Safety & accident prevention, prevention
occupational diseases and protective equipment
 4. Administration of welfare funds, Thrift &
Savings
 5. Educational and recreational facilities
 List of items which are not normally dealt
with by Works Committee. :-
 1. Wages and allowances
 2. Bonus, profit sharing and incentive
schemes
 3. Rationalization & matters reg. Fixing of
work loads
 4. Provident fund & Gratuity schemes & other
retirement benefits
 5.Quantum of leave
 6. Matters connected with retrenchment &
lay-off
 The main functions of the Works Committee are
to preserve amity and establish cordial relations
between workers and employer and to resolve
differences of opinion in matters of common
interest, through negotiations. Section 4.
 The Supreme Court in the case of North Brook
Jute Co. Vs. Workmen ( 1960 (1) LLJ 580, held that
these Works Committees are not intended to
supplement or supersede the Unions for the
purpose of collective bargaining and cannot
consider real or substantial changes in the
conditions of service of the workmen. Their task
is basically advisory in nature.
 Section 9C of the amended Industrial Disputes
Act, 2010, w. e. f. 15-9-2010 provide that every
Industrial Establishment employing 20 or more
workmen shall have one or more Grievance
Redressal Committee for resolution of individual
grievances.
 It shall consist of equal number of members from
the Employer and the workmen.
 The number of members not to exceed six.
 Further, there should be, as far as practicable, one
woman member if the Committee has two
members and in case the number of members are
more than two, number of woman members may
be increased proportionately
 The setting up of said committee as per Section
9C shall not affect the right of the workman to
raise an industrial dispute on the same matter
under the provisions of the Act.
 Committee may complete the proceedings within
30 days on receipt of written application by or an
behalf of the aggrieved party.
 Workman may prefer an appeal to the employer
within one month against the decision of
committee and employer shall dispose of the
same within one month
 If there is an established Grievance Redressal
Mechanism, this Section 9C shall not apply.
 If the Employer and the workmen fail to arrive at a
settlement through negotiations, the Conciliation
Officer may intervene as a Mediator to reconcile
the differences of opinion and help them in
achieving a successful settlement.
 The Conciliation Officer of the Area/Industry is
appointed by the Government to resolve the
issues between the Management and the
Union(s) {Section 4}
 However, Conciliation Officer is not competent to
decide the various points of issues between the
opposite parties.
 Intervention by the Conciliation Officer is
mandatory in case an industrial dispute has arisen
in a Public Utility Service and notice of strike or
lock-out (u/s 22) has been served.
 The Conciliation Officer shall send a report of
proceedings to the Government, as to whether a
settlement has been arrived or not within 14 days of
the commencement of the conciliation proceedings or
within the extended time. If a settlement is arrived at
as a result of conciliation proceedings, a memorandum
of settlement is worked out and it becomes binding on
all parties concerned for a period agreed upon.
 If no settlement is arrived at, the C.O. shall send report
to the Government.
 In India, appointment of the Board of Conciliation is
rare for the settlement of disputes. In practice, settling
disputes through a conciliation officer is more
common and flexible
 Conciliation officer may enforce the attendance
of any person for the purpose of examination of
such person or call for and inspect any document
which he has ground for considering to be
relevant to the industrial dispute or to be
necessary for the purpose of verifying the
implementation of any award or carrying out any
other duty imposed on him under this Act, and
for the aforesaid purposes, the conciliation
officer 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 examining him or of compelling
the production of documents
 Adjudication: Chapter III Section 10
(under the Industrial Disputes Act, 1947):
 If a dispute is not settled by negotiations or conciliation and
the parties do not agree to refer the dispute to Arbitration, the
Govt. may, on its own discretion, or on an application by the
parties to the dispute representing the majority, separately or
jointly, refer the dispute to the Labour Court or Industrial
Tribunal for adjudication.
Adjudication in India
 3 Types of adjudication authorities for the adjudication of
industrial disputes viz.
 Labour Court,

 Industrial Tribunal and

 National Tribunal,
Labour Court: :
Section 7
(1) the appropriate Government may, by
notification in the Official Gazette, constitute
one or more Labour Courts for 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.
 (2) A Labour Court consists of one person
only to be appointed by the appropriate
Government.
 Section 7 (3) A person shall not be qualified for
appointment as the Presiding Officer of a Labour
Court, unless;
 (a) he is, or has been, a Judge of a High Court; or
 (b) he has, for a period of not less than 3 years, been
a District Judge or an Additional District Judge; or
 (d) he has held any judicial office in India for not less
than 7 years; or
 (f) he is or has been a Deputy Chief Labour
Commissioner (Central) or Joint Commissioner of the
State Labour Department, having a degree in law and
at least 7 years’ experience in the Labour Department
including 3 years of experience as Conciliation
Officer:
 (g) he is an officer of Indian Legal Service in Grade III
with 3 years experience in the grade.
 Further, refer to State Amendments .Section 7
 MATTERS WITHIN THE JURISDICTION OF LABOUR COURTS
(1) The propriety or legality of an order passed by an
employer under the standing orders;
(2) The application and interpretation of standing orders;
(3) Discharge or dismissal of workmen including
reinstatement 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.
Note: An order of reference shall specify the period within
which the Award is to be submitted to the Government.
 State Amendment: [Madhya Pradesh]:
 In its application to the State of Madhya Pradesh, the Second Schedule shall be renumbered as Part-A
thereof and in the Second Schedule, after Part-A, as to be renumbered insert the following, namely:
 PART-B
 [See section 7(1-A))
 CENTRAL ACTS OFFENCES WHEREUNDER TRIABLE BY LABOUR COURT
 1. The Trade Unions Act, 1926.
 2. The Payment of Wages Act, 1936.
 3. The Factories Act, 1948.
 4. The Minimum Wages Act, 1948.
 5. The Employees' State Insurance Act, 1948.
 6. The Employees' Provident Fund and Miscellaneous Provisions Act, 1952.
 7. The Working Journalists and other Newspaper Employees (Conditions of Service) an Miscellaneous
Provisions Act, 1955.
 8. The Motor Transport Workers Act, 1961.
 9. The Maternity Benefits Act, 1961.
 10. The Payment of Bonus Act, 1965.
 11. The Beedi and Cigar Workers (Conditions of Employment) Act, 1966.
 12. The Contract Labour (Regulation and Abolition) Act, 1970.
 13. The Payment of Gratuity Act, 1972.
 14. The Sales Promotion Employees (Conditions of Service) Act, 1976.
 15. The Equal Remuneration Act, 1976.
 16. The Inter-State Migrant Workmen (Regulation of Employment and Condition; Service) Act, 1979".
 See M.P. Act 43 of 1981, S. 3(v) (w.e.f. 26-1-1982).
 The Government is empowered to refer an
Industrial Dispute and the Labour Court cannot
reject the reference on the ground that it is time-
barred,
 Citation: Regubir Singh Vs. General Manager,
Haryana Roadways Corpn. C.A. No: 8434 of
2014, decided on 3.9.2014 (SC).
 Suspension is not an industrial dispute, and thus
cannot be referred by the Government to the
Labour Court for adjudication.
 Citation: Bharat Heavy Electricals Ltd. Vs.
Presiding Officer, Labour Court VIII & others, W.P.
(C) No: 926/2001 decided on 17.7.2015 (Delhi).
Section 7A (1) The appropriate Government
may, by notification in the Official Gazette,
constitute one or more Industrial Tribunals for
the adjudication of industrial disputes relating
to any matter, whether specified in the Second
Schedule or the Third Schedule.
States like Bombay, Madras, Uttar Pradesh
have their own legislations of setting up
industrial tribunal.
 (2) A Tribunal shall consist of one person to be appointed
by the appropriate Government.
 (3) A person shall not be qualified for appointment as
the Presiding Officer of a Tribunal unless,
 (a) he is, or has been, a Judge of a High Court; or
 (aa) he has, for a period of not less than3 years, been a
District Judge or an Additional District Judge;
 (b) he is or has been a Deputy Chief Labour
Commissioner (Central) or joint Commissioner of the
State Labour Department having a degree in Law and at
least 7 years ‘experience in the labour department
including 3 years of experience as Conciliation Officer;
or
 (c) he is an officer of Indian Legal Service with 3 years’
experience in the grade.
 Thus, the Industrial Tribunals have jurisdiction over the
matters over which the Labour Courts have jurisdiction
and specifically over those mentioned in the Third
Schedule, namely:-
(i) Wages, including the period and mode of payment;
(ii) Compensatory and other allowances;
(iii) Hours of works and rest intervals;
(iv) Leave with wages and holidays;
(v) Bonus, profit-sharing, provident fund and gratuity;
(vi) Shift-working otherwise than in accordance with
Standing Orders;
(vii) Classification by grades;
(viii) Rules of discipline;
(ix) Retrenchment of workmen and closure of
establishment.
 The Govt. should exercise its discretion of
reference to the Labour Court or Industrial
Tribunal after applying its mind.
 Citation: K.C. (Pvt.) Limited Vs. Govt of A.P. &
Others 1987 1LLR 647 (AP), Wings Wear
Corpn. Vs. Lt. Governor, 1984 LIC 78(Delhi),
Tulsidas Vs. Nagvekar Kadamba Transport
Corpn. Lt. 1988 73 FLR 86.
Section 10 (4)
 A Labour Court or Tribunal shall confine its
adjudication only to the points specified in the
order of Reference and matters incidental
thereto.
Section 11 A.
 A Labour court or Tribunal may, if it think fit, set
aside the order of discharge or dismissal and
direct reinstatement of the workman, or give
such other relief, or award any lesser punishment
in lieu of dismissal or discharge, as the
circumstances of the case may require.
 Section 11 A:
 Power to give Appropriate Relied in case of
Discharge/Dismissal: Where an industrial dispute
relating to discharge/dismissal of a workman has
been referred to a Labor Court for adjudication and
in the course of the adjudication proceedings, the
Court or the tribunal is satisfied that the order of
the same was not justified, it may, by its award set
aside the order of discharge/dismissal, direct
reinstatement of the workman in such terms, if
any, as it thinks fit, or given such other relief to the
workman (including the award of the lesser
punishment in lieu of discharge/dismissal) as the
circumstances of the case may require.
 Section 11(3) :Every Labour Court, Tribunal and National Tribunal
shall have the same powers as are vested in a Civil Court under the
Code of Civil Procedure, 1908 when trying a suit, in respect of the
following matters, namely:
 (a) enforcing the attendance of any person and examining him on
oath;
 (b) compelling the production of documents and material objects;
 (c) issuing commissions for the examination of witnesses;
 (d) in respect of such other matters as may be prescribed; and every
inquiry or investigation by Labour Court, Tribunal or National
Tribunal, shall be deemed to be a judicial proceeding within the
meaning of Sections 193 and 228 of the Indian Penal Code.
 Reference: Section 193 of IPC : Punishment for false evidence.
 Section 228 of IPC: Intentional insult or interruption to public servant
sitting in judicial proceedings.
 Section 17B.
 Employer to pay last drawn wages to reinstated workman
when proceedings challenging the award of his reinstatement
are pending in the Honorable Higher Courts
 Where in any case, a Labour Court, Tribunal or National
Tribunal by its award directs reinstatement of any workman
and the employer prefers any proceedings against such award
in a High Court or the Supreme Court, the employer shall be
liable to pay such workman, during the period of pendency of
such proceedings in the High Court or the Supreme Court, full
wages last drawn by him, inclusive of any maintenance
allowance admissible to him under any rule if the workman
had not been employed in any establishment during such
period.
 Section 7B (1)
 The Central Government may, by notification in the
Official Gazette, constitute one or more National
Industrial Tribunals 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
establishment situated in more than one State are
likely to be interested in, or affected by, such
disputes.
 (2) It consists of one person only to be appointed
by the Central Government.
 The person shall not be qualified for appointment
as the Presiding Officer unless he is, or has been, a
Judge of a High Court.
 Central Government Industrial Tribunal-cum-
Labour Courts (CGIT-cum-LCs) are set up
under the provisions of Industrial Disputes
Act, 1947 for adjudication of industrial
disputes arising in Central Sphere.
 There are 21 CGIT-cum-LCs set up in
various States in India.
 The CGIT-cum-LC No.1, Mumbai and CGIT-
cum-LC, Kolkata also function as National
Tribunals.
CGIT-cum-Labour Court No.1,
Shram Bhawan, Murlinagar, Jagjivan Nagar,
DHANBAD - 826003.
Tel. No (0326) -2221010
CGIT-cum-Labour Court,
H.No.1230, Gole Bazar,
Wright Town
JABALPUR- 482002
Tele/fax.- (0761)-2414965(Office)
CGIT-cum-Labour Court No.1,
Karkardooma Court Complex
R.N. 38, Block-A,
DELHI - 110032
Ph. No (011)-22382360
Presiding Officer,
CGIT-cum-Labour Court, No-l
2nd floor, Press Book Depot Building,
Sector-18,
Chandigarh -160017
Tel. No (0172)-2784556
CGIT-cum-Labour Court, no. l
I Floor, Sham Raksha Bhavan,
CGIT-cum-Labour Court No.2,
Shram Bhawan, Murlinagar, Jagjivan Nagar,
DHANBAD - 826003.
Ph. No. – (0326)-2230351(Office)
FAX --- (0326)- 2224516
CGIT-cum-Labour Court,
Shram Bhawan, ATI Campus,
Udyog Nagar,
KANPUR – 208005.
Tele/fax: (0512)-2218642
CGIT-cum-Labour Court,
Building 314, Sreepali
Asansol-713304
Tel. No (0341) – 2282533
FAX (0341) - 2281685
CGIT-cum-Labour Court,
20-B, Abdul Hamid Street, Block-l (H), 1st
floor
Kolkata – 700069
Tel. No. (033) – 22482482
FAX – 033-22623062
CGIT-cum-Labour Court No. Il
II Floor, Shram Raksha Bhavan, , Opp.
IT-cum-Labour Court, CGIT-cum-Labour Court,
CGO Complex Kendriya Sadan, Block ‘B’ First Floor, New Secretariat Building 1st floor at Civil
Sector-10, Vidyadhar Nagar,JAIPUR lines,NAGPUR.-420001
Tele/fax-- (0141) 2233728 Tele/fax- (0712) -2552593

CGIT-cum-Labour Court No.ll CGIT-cum-Labour Court,

3rd floor, Govt. Press Extension Building, Sector-18- Shram Sadan 3rd Cross , 3rd Main (FTI Campus) ll
A Chandigarh Phase, Yashwantpur, Tumkur Road BANGALORE –
Tele/Fax - (0172)2728108 560022
Tele/fax - (080) – 23474404

CGIT-cum-Labour Court, CGIT-cum-Labour Court,

1st Floor, B-wing, 26 Haddows Road, Shastri Bhawan M-2 Block, Manoranjan
Chennai – 600006 Complex,M.J.Road,HYDERABAD - 500001.
Tel. No. (044) - 28262090 Tele/Fax No. 24657379
FAX – (044)- 28252402

CGIT-cum-Labour Court, CGIT-cum-Labour Court No. 2,

H-24, Parijata, Jaydev Nagar,Nageswar Tangi, Lewis Room No. 33, Block-A,Karkardooma Court Complex
Road,BHUBANESHWAR - 751002. DELHI - 110032
Tele/fax - (0674).-2433517 (Off) Tel. No. (033) – 22482482
Ph. No (011) – 22304881

CGIT-cum-Labour Court, CGIT-cum-Labour Court,

Mahesh Ch. Mohajan Building, H.C. Road, B-Block 7th floor, Multi Stared Building, Lal Darwaja
Jurpukhuripar,Uzan Bazar, GUWAHATI – 781101 AHMEDABAD – 380001
Tele/FAX - (0361)-2608257 Tele/Fax - (079)- 25505506
RLC Ahmedabad Tel./faxNo.25504560

CGIT-cum-Labour Court,
 Section 16. Award
 (2) The award of a Labour Court or Tribunal or National
Tribunal shall be in writing and shall be signed by its Presiding
Officer.
 Section17:Publication of award
 (1) Every award of a Labour Court, Tribunal or National
Tribunal shall, within a period of 30 days from the date of its
receipt by the appropriate Government, be published in such
manner as the appropriate Government thinks fit.
 17A. Commencement of the award
 (1) An award shall become enforceable on the expiry of 30 days
from the date of its publication under section 17.
 So, unless the award becomes enforceable, no rights and
liabilities can arise under the award.
 Section 19
 An arbitration Award in a case where a notification has been
issued under sub-section (3A) of section 10A or an Award of
a Labour Court, Tribunal or National Tribunal which has
become enforceable shall be binding on,
 (a) all parties to the industrial dispute;
 (b) all other parties summoned to appear in the proceedings
as parties to the dispute, unless the Arbitrator, Labour Court,
Tribunal or National Tribunal, as the case may be, records the
opinion that they were so summoned without proper cause;
 (c) where a party referred to in clause (a) or clause (b) is an
Employer, his heirs, successors or assigns in respect of the
Establishment to which the dispute relates;
 (d) where a party referred to in clause (a) or clause (b) is
composed of workmen, all persons who were employed in the
establishment or part of the establishment, as the case may
be, to which the dispute relates on the date of the dispute
and all persons who subsequently become employed in that
establishment or part.
 (2) Subject to the provisions of section 17A, the award
published under sub-section (1) shall be final and shall
not be called in question by any Court in any manner
whatsoever.
 This provision, first, seeks to oust the jurisdiction of the
Civil courts against the awards of adjudicators under the
Act.
 Secondly, it implies that there is no appeal or revision
against the awards.
 The Award of the Labour Court or Industrial Tribunal shall
be final and not appealable.
 However, a writ petition before the High Court under
Article 226 and thereafter an appeal before the Supreme
Court can be filed under Article 32 of the Constitution.
The Supreme Court in Cox & Kings (Agents)
Ltd. v. Their Workmen laid down a two-fold
test for a decision of the Tribunal to fall
within the definition of award.
a. It must be an adjudication of a question or
point relating to the industrial dispute,
which has been specified in the order of
reference, or is incidental thereto; and
b. Such adjudication must be on merits
 Associated Cement Companies Ltd. Vs. Their
Workmen, AIR 1960 SC 777
 An award made by Industrial Tribunal
regarding a dispute referred for adjudication
not only binds the parties to the dispute, or
the parties summoned to appear; but all
persons who are employed in the
establishment, or who would be employed in
future would also be governed by the award.
The Supreme Court pointed out that it was open for
the adjudicator to make the award in respect of some
of the matters referred to it, whilst some others
remain to be determined.
This would be the determination of the matters
decided and would be an interim award.
The Supreme Court in this case also ruled that an
adjudicator is empowered under Sec. 10 (4) of the Act
to grant interim relief, with respect to disputes
referred, as a matter incidental to the points of
dispute.
The Court, however, added that the “interim relief
should not be the whole relief that the workmen would
get if they succeeded finally”.
 The Award of the Labour Court or
Industrial Tribunal shall be final
and not appealable.
 However, a writ petition before
the High Court and thereafter an
appeal before the Supreme Court
can be filed.
 To exercise in Class:
 Devkinandan K. Mishra Vs. Sayaji Iron and
Engineering Company Pvt. Ltd. and anr.
 Colour-Chem. Limited vs. A.L. Alaspurkar &
Ors on 5 February, 1998
 Section 33
 (3) A "protected workman", in relation to an establishment,
means a workman who, being a member of the Executive or
other Office Bearer of a registered trade union connected with
the establishment, is recognised as such in accordance with
rules made in this behalf.
 (4) In every establishment, the number of workmen to be
recognised as protected workmen for the purposes of sub-
section (3) shall be 1% of the total number of workmen
employed therein subject to a minimum number of 5 protected
workmen and a maximum number of 100 protected workmen
and for the aforesaid purpose, the appropriate Government
may make rules providing for the distribution of such
protected workmen among various trade unions, if any,
connected with the establishment and the manner in which the
workmen may be chosen and recognised as protected
workmen.
 The Kerala High Court in an interesting dispute wherein a
Workman who was already facing Disciplinary action and was
facing some proceedings for misconduct was nominated by
the Union for recognizing as a Protected Workman. The
management declined the request which lead to the Union
approaching the Labor Commissioner who passed an order in
favor of the Union granting protection to the nominated
workman.
 The management challenged the said order by filing the WP.
The HC observed that the choice of the individual officers
who are to be recognized as protected workman has been left
to the concerned Trade Union and once the communication of
the Union’s choice is sent to the employer, a mandatory
obligation is cast on the employer that it shall recognize the
workmen as protected workmen even if the workman is
facing disciplinary actions.
 Section 33(1)
 During the pendency of any conciliation
proceeding before a Conciliation Officer or a
Board or of any proceeding before an Arbitrator
or a Labour Court or Tribunal or National
Tribunal in respect of an industrial dispute, no
employer shall,
 (a) in regard to any matter connected with the
dispute, alter, to the prejudice of the workmen
concerned in such dispute, the conditions of
service applicable to them immediately before
the commencement of such proceeding; or
 (b) for any misconduct connected with
the dispute, discharge or punish,
whether by dismissal or otherwise,
any workmen concerned in such
dispute, save with the express
permission in writing of the authority
before which the proceeding is
pending.
 (2) During the pendency of any such proceeding in
respect of an industrial dispute, the employer may,
in accordance with the standing orders applicable
to a workman concerned in such dispute or, where
there are no such standing orders, in accordance
with the terms of the contract, whether express or
implied, between him and the workman:
 (a) alter, in regard to any matter not connected
with the dispute, the conditions of service
applicable to that workman immediately before the
commencement of such proceeding; or
 (b) for any misconduct not connected with
the dispute, or discharge or punish,
whether by dismissal or otherwise, that
workman:
 Provided that no such workman shall be
discharged or dismissed, unless he has
been paid wages for one month and an
application has been made by the employer
to the authority before which the
proceeding is pending for approval of the
action taken by the employer.
 (3) Notwithstanding anything contained in sub-
section (2), no employer shall, during the pendency
of any such proceeding in respect of an industrial
dispute, take any action against any protected
workman concerned in such dispute,
 (a) by altering, to the prejudice of such protected
workman, the conditions of service applicable to
him immediately before the commencement of
such proceedings; or
 (b) by discharging or punishing, whether by
dismissal or otherwise, such protected workman,
save with the express permission in writing of the
authority before which the proceeding is pending.
 Section 9A. Notice of change
 No employer, who proposes to effect any change in
the conditions of service applicable to any workman
in respect of any matter specified in the Fourth
Schedule, shall effect such change,
 (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 21 days of giving such notice (in Form E)
 Provided that no notice shall be required for
effecting any such change,
 (a) where the change is effected in pursuance of any
settlement or award; or
 (b) where the workmen likely to be affected
by the change are persons to whom the
Fundamental and Supplementary Rules, Civil
Services (Classification, Control and Appeal)
Rules, Civil Services (Temporary Service) Rules,
Revised Leave Rules, Civil Service Regulations,
Civilians in Defence Services (Classification,
Control and Appeal) Rules or the Indian
Railway Establishment Code or any other rules
or regulations that may be notified in this
behalf by the appropriate Government in the
Official Gazette, apply.
 Conditions of Service for change of which notice is to
be given
 1. Wages, including the period and mode of payment;

 2. Contribution paid, or payable, by the employer to

any provident fund or pension fund or for the benefit
of the workmen under any law for the time being in
force;
 3. Compensatory and other allowances;

 4. Hours of work and rest intervals;

 5. Leave with wages and holidays;

 6. Starting, alteration or discontinuance of shift

working otherwise than in accordance with standing
orders;
 .
 7. Classification by grades;
 8. Withdrawal of any customary concession or
privilege or change in usage;
 9. Introduction of new rules of discipline, or
alteration of existing rules, except in so far as they
are provided in standing orders;
 10. Rationalisation, standardisation or improvement
of plant or technique which is likely to lead to
retrenchment of workmen;
 11. Any increases or reductions (Other than casual)
in the number of person employed or to be
employed in any occupation or process or
department or shift not occasioned by
circumstances over which the employer has no
control
 Where a post was abolished due to
computerisation and the workman was
retrenched without giving notice under Section
9A, it was held that computerisation of work
resulted in change of working conditions and
non-issuance of notice under Section 9A made
the retrenchment illegal.
 Citation : Pradeep kumar Gupta Vs. P.O. Labour
Court & Anr. W.P. (C) No: 1137/1999 decided
on 29.7.2013 (Del.). Also refer Lokmat
Newspapers Pvt. Ltd. Vs. Shankarprasad AIR
1999 SC 2423
 The real object and purpose of Section 9A is to afford
an opportunity to the workmen to consider the effect
of the proposed change and if necessary to represent
their point of view on the proposal.
 Citation : Tata Iron & Steel Company Ltd. Vs. The
Workmen & Others (1972) 2 SCC 383.
 However, if the changes are more beneficial than the
previous rules, Section 9A has no application and
merely because the beneficial rules were not
circulated amongst the workmen, the employer could
not be held guilty of violating the provisions of
Section 9A.
 Citation: Assam Carbon Products Ltd. Vs State of West
Bengal & Others W.P. No. 593 of 2011 decided on
28.6.2013 (Cal.)
 Section 25-A
 (1)
 (a) The provisions of this Chapter are
applicable to industrial establishments in
which less than 50 workmen on an average
per working day have been employed in the
preceding calendar month; or
 (b) to industrial establishments which are of a
seasonal character or in which work is
performed only intermittently.
 Section 25 (kkk)
 An employee is said to have been laid-off on any day, if the
employer fails, refuses or is unable to provide him
employment on that day within 2 hours of his presenting
himself for work at the normal appointed time, on account
of:-
 Shortage of coal, power or raw materials
 Accumulation of stocks
 Breakdown of machinery.
 Natural calamity or
 any such other reason.
 The expression “any other reason” should be construed to
mean reason similar or analogous to the preceding reasons.
 Citation: Management of Kairbetta Estate Vs. Rajamanickum
(1960) 3 SCR 371
 A lay-off must be distinguished from a lock-out.
 In the case of lay-off, owing to reasons stated above,
the Employer is unable to give employment to one or
more workmen.
 In the case of lock-out, the Employer closes the
business and locks out the whole body of workmen
for reasons other than those stated above.
 Lay-off generally occurs in a continuing business,
whereas a lock-out is the closure of the business
itself.
 ‘Lock-out’ is temporary or for a limited period
 Whereas “closure" means the permanent closing
down of a place of employment or part thereof.
  Chapter VA of the Industrial Disputes Act empowers
the employer to lay-off.
 It determines not merely the right of the workmen to
receive compensation but also the wider rights and
liabilities with regard to lay-off itself.
 According to the definition given in the Act, the
periods of lay-offs are-
(a) Lay-off for a day occurring when work is denied
within two hours of his presenting himself for work.
(b) Lay-off for one-half of day occurring when work is
denied in the first half of the shift but the workman
is called in the second half of the shift.
 Section 25-C
 Whenever a workman (other than a badli workman
or a casual workman) whose name is borne on the
muster rolls of an industrial establishment and
who has completed not less than one year of
continuous service under an employer is laid-off,
whether continuously or intermittently, he shall
be paid by the employer for all days during which
he is so laid-off, except for such weekly holidays
as may intervene, compensation which shall be
equal to 50% of the total of the basic wages and
dearness allowance that would have been payable
to him had he not been so laid-off:
 Section 25-K. Application of Chapter V-B
 (1) The provisions of this Chapter shall apply to an industrial
establishment (not being an establishment of a seasonal
character or in which work is performed only intermittently) in
which not less than 100 workmen were employed on an
average per working day for the preceding twelve months.
 Permission can be obtained by submitting an application in
Form O-3 within 60 days before the commencement of lay-off
stating the reasons for the intended lay-off. A copy of this
application should be served simultaneously on the workmen
also.
 If no order is communicated within 60 days from the date of
application, the permission shall be deemed to have been
granted.
 Section 25-M
 (1) No workman (other than a badli workman or a
casual workman) whose name is borne on the muster
rolls of an industrial establishment to which Chapter
V B applies shall be laid-off by his employer except
with the prior permission of the appropriate
Government or such authority as may be specified by
that Government by notification in the Official
Gazette (hereinafter in this section referred to as the
specified authority), obtained on an application made
in this behalf, unless such lay-off is due to shortage
of power or to natural calamity, and in the case of a
mine, such lay-off is due also to fire, flood, excess of
inflammable gas or explosion.
 Section 2 (oo)
‘Retrenchment’ means the termination by the
employer of the service of a workman for any reason
whatsoever than but excludes:
 (a) punishment of dismissal inflicted by way of
disciplinary action
 (b) voluntary retirement of the workman; or
 (c) retirement of the workman on reaching the age of
superannuation; or
 (d) 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 on its expiry or of such contract being
terminated under a stipulation in that behalf
contained therein; @
 @Citation : Ram Prasad & Others Vs. State of
Rajasthan & Others (1993) XXIV LLR 59 (Rajasthan)
 (e) termination of the service of a workman on the ground of
continued ill-health;
 Citation: The Management of Rungta Colliery Vs. Keshardeo
Rungta and another, Civil Appeal No: 10828 of 1983. 1990
LLR (SC) 411.
 “ for any reason whatsoever” :Termination due to reduction in
volume of work has been held to be retrenchment.
 Citation: Gammon India Ltd. Vs. Niranjan Dass AIR 1984 SC
500.
 It was the discretion of the Employer to organise and arrange
his business in the manner he thought best. If termination of
services of some workmen became necessary, the Adjudicator
could not interfere, if the action of the management was bona
fide.
 Citation: Parry & Co. Vs. PCL (1969) 2 SCR 976 (SC)
 Section 25F & 25G of Chapter VA
 Workman must have worked for 240 days in
1 year.
 Retrenchment compensation @ 15 days’
wages for every completed year to be
calculated at last drawn wages.
 One month’s notice or wages in lieu
thereof.
 Reasons for retrenchment.
 Complying with principle of ‘last come first
go.’
 Sending Form P to Labour Authorities.
 Section 25-N (Chapter VB)
 When there are more than 100 (in UP it is
300 or more) workmen during preceding
12 months.
 Three months’ notice or wages thereto.
 Form P-A within 60 days before proposed
retrenchment, giving reasons also, with a
copy to workmen concerned
simultaneously.
 Compensation @ 15 days’ wages for every
completed year of service.
 Section 2 (cc)
 “closure" means the permanent closing down of a
place of employment or part thereof.
 Thus, an undertaking or establishment may be
closed down wholly or partly.
 The bona fide reasons can be continuous losses, no
possibility of revival of business or inability for
various other reasons to continue the industrial
activity.
 It is for this reason that a closure is differentiated
from ‘Lock-out’ which is temporary or for a limited
period.
 Wherein 50 or more workers are employed, 60
days’ notice to the labour authorities for
intended closure in Form Q. Section 25 FFA.
 Wherein 100 or more workers are employed (in
UP 300 & workmen), at least 90 days notice in
Form QA for prior permission by the
Government .Section 25-O .
 However, undertakings engaged in the
construction of buildings, bridges, roads,
canals, dams, etc. are not required to serve the
notice or obtain the approval of Govt.
 Compensation : As is given for Retrenchment.
 Does the right to continue business include the
right to close down the business? Thus, any and all
guidelines for closure stand a chance to violate the
FR?
 Guidelines given by the Supreme Court:
The closure of the industrial undertaking is supposed
to have adverse impact on the interest of the working
class and therefore a balance has to be struck by
prescribing the manner of seeking permission for
closure and by providing dealing with the said
application by the said authority.
Thus, it does not violate the FR guaranteed under the
constitution.
 FAIRNESS is related to
Equality
Impartiality
Justice
Fair “procedure” is one which
applies similarly in all cases
Fairness means conformity with
the Rules or Standards.
 It is an unfair treatment by an Employer of an
Employee.
 Means any unfair act or omission that arises
between an Employer and an employee.
 As per The National Labor Relations Act, 1935 of
USA:- it is
 (I)The unfair conduct of the Employer relating to
the promotion, demotion, training or relating to
provisions of benefits to an employee
 (II) The unfair suspension of an Employee or any
other disciplinary action
 “ UNFAIR LABOUR PRACTICES”
 Section 2(r a) of the Industrial Disputes
(Amendment) Act, 1982 defines unfair labour
practice to mean, “any practices specified in the
Fifth Schedule”. The Fifth Schedule enumerates the
unfair labour practices;
 Sections 25T and 25U of the Act provides as
under:-
 (1) Prohibition of unfair labour practice : No
Employer or workman or a Trade Union, whether
registered under The Trade Unions Act, 1926 or
not, shall commit any unfair labour practice.
 For enumeration of such practices, Refer to Fifth
Schedule of the Act. ( Read & explain)
 In this case some of the workers were
elevated to the post of Driver-cum-Assistant
Fitter.
 There were several others who claimed that
they had better qualifications and had been
working for longer tenure.
 They claimed that they were victimized for
their trade union activities.
 Note: To incorporate orders of Tribunal &
Allahabad High Court
 It was also observed that any activity done by the
employer which would disrupt trade union activities
by placing unreasonable preference of one trade
union over the other, shall amount to ULP.
 Unjust promotions, partiality towards one set of
workers are examples of the same.
 Citations: AIR 1962 All 70, 1961 (2) FLR 421,
(1961) ILLJ 686 All, (1963) ILLJ 340.
 Allahabad High Court
 L.H. Sugar Factories And Oil Mills Vs. State Of Uttar
Pradesh And Ors. on 22 February, 1961
 Merely because the relation between the workers and
the Company is not good doesn’t not mean that any
legitimate action taken against the said workers shall
be per se illegitimate.
 In this case the some 13 workmen had prevented the
others from working. The other workmen were willing
to work.
 In an internal investigation, the 13 workers were
found to be guilty and hence terminated.
 They pleaded that they were being victimized
because of their trade union activities. It was
observed that merely because their relations with the
company was not good, doesn’t mean that they
cannot terminated because of their illegitimate trade
activities.
 In an industry, if a holiday fell on Sunday, the next day was
declared to be a holiday. However this time it was not.
 Some workers had refused to work on the next Monday. As
a result of an internal investigation, they were all
terminated.
 On appeal it was observed that the termination of services
for an absence from work for a day amounted to
victimization because the punishment was not in
proportion to the misconduct.
 Any reasonable alternative course of conduct would qualify
the said activity as ULP.
 Details of Supreme Court of India
 Hind Construction & Engineering Vs Their Workmen on 9th
November, 1964
 Equivalent citations: 1965 AIR 917, 1965 SCR (2) 85
 Victimization:
 It is either when the workman concerned is
innocent and yet the punishment because he is in
someway displeased the employer.
 Where the employee has committed an offence
but is given a punishment more than the gravity
of it.
 Committing breach of Section 25G (i.e. not
allowing the principles of “last come first go”) has
been held to be an unfair labour practice.
 Citation : Machinon Machenzie Ltd. Vs Machnon
Employees Union CA No: 5319 of 2008 decided
on 25.02.2015(SC)
 TO EXPLAIN - “FIFO” “LIFO”
 Questions
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