Applicability

• The Industrial Disputes Act extends to whole

of India and applies to every Industry and its
various industrial establishment carrying on
any business, trade, manufacture or distributi
on of goods and services irrespective of the
number of workmen employed therein.
What is an Industrial Dispute ?
 Analysis of the above definition
1. There must be a dispute or difference.
2. The dispute or difference must be between
employers and employers or between
employers and workmen or between
workmen and workmen
3. The dispute or difference must be connected
with the employment or non employment or
terms of employment or with the condition
of labour of any person.
• Connected with non – employment of
workman: If an employer refuses to employ a
workman dismissed by him the dispute relates
to non-employment.
• Connected with employment: If the union
insists that a particular person should not be
employed by the employer, the dispute relates
to the employment of workman
• Connected with terms of employment: refers
to all terms and condition stated in the
contract of employment.
• Connected with conditions of labour: it has
reference to the amenities to be provided to
the workmen and the conditions under which
they will be required to work.
 What does ‘hire or reward’ mean

• 'Hire' means there is specific compensation for

carrying passengers or freight, but it is not
necessary that the carrier makes a profit.
• 'Reward' means any 'valuable consideration',
usually in situations where one person performs
a useful service for some other person, and the
person performing the service is given
recompense (reward) for that service. It includes
cases where there is no obligation to pay. Reward
is not just an alternative word for hire.
 Difference between express and
implied terms
• They are called 'terms' of the contract. Some
of these terms are 'express' terms – that is
they are expressly or specifically stated, either
orally (at the initial interview, say) or in
writing. ... An important implied term is the
duty of mutual trust and confidence, which
is implied in every employment contract.
PUBLIC UTILITY SERVICE
Methods of Settlement of Disputes
 RATIFICATION
• sign or give formal consent to (a treaty,
contract, or agreement), making it officially
valid.
ARBITRATION PROCEEDING
ADJUDICATION
Strike, Lock-out, Lay-off,
Retrenchment, Closure.
STRIKE
 ESSENTIALS OF STRIKE
There shall be cessation of work or refusal to
work
Cessation or refusal to work should be by a
body of workmen
Workmen should be acting in concert in order
to enforce a demand against the employer
during an industrial dispute
KINDS OF STRIKES
 Types of Strikes
 Economic Strike – Such strike happens due to
economic demands like increment of wages and
allowances like house rent allowance, transport
allowances, bonus etc.
 Sympathy Strike – In such strike union or workers
of one industry join the strikes already hailed by
other union or workers.
 General strike – This strike intended to increase
the political pressure in the ruling party by all
unions or members in a region or state.
 Kind of Strikes………..contd.
 Sit down strike – In such case, workers hold strikes
at the workplace and none of the workers stays absent
from duty but they all refuse to work till their demands
are fulfilled.
 Slow down strike – It means workers or unions don’t
refuse to work but put pressure on industries to get
their demand by reducing or restricting the output of
the production of an industry.
 Hunger strike – It is one of the painful strikes by the
striker where workers go on strike without having
food/water to redress the grievances. The employees
of Kingfisher airlines went on hunger strikes for salary
dues of several months.
 Kind of Strikes…………….contd..
 Wildcat strike – Such strike happens by the
workers without the consent of union and
authority. In 2004, advocates went on wildcat
strike at civil courts in Bangalore to protest the
remarks allegedly made by an assistant
commissioner against them.
 Work to Rule Strike: In such a case, the
employees adhere to the rules while performing
their duties which ordinarily they do not observe.
Thus, strict observance of rules results in slowing
down the tempo to work, causes inconvenience to
public and embarrassment to the employer.
LOCKOUT

LOCKOUT
 LOCKOUT
• A lockout is a temporary work stoppage or
denial of employment initiated by the
management of a company during a labour
dispute
 Lock-out
• “Lockout” means the temporarily closing of a
place of employment or suspension of work or
the refusal by an employer to employ any
number of persons employed by him.
• Note: Just as strike is a weapon in the hands of
the labour to force the management to accept
their demands; similarly the lock-out is the
weapon in the hands of the employer to coerce
the labour to come down in their demands in
regard to condition of service.
 Essentials of lock-out
1. Temporarily closing of a place of employment
or
2. Suspension of work; or
3. Refusal by an employer to continue to
employ any number of persons employed by
him.
4. The above acts of the employer should be
motivated by coercion.
Lock-out…………contd..

In case of lockout the

workers are asked by the
employers to keep away
from work and they are
not under obligation to
present themselves for
work
Difference between Strike and Lock-out
 LAY-OFF
2(kkk) : means the failure, refusal or inability
of an employer on account of shortage of coal,
power, or raw materials or accumulation of
stocks, breakdown of machinery or natural
calamity or any other connected reason to
give employment to a workman whose name
is born on the muster rolls and who has not
been retrenched.
 The Essentials of a Lay-off
 There must be failure of refusal or inability of
the employer to continue to employ workers
in his employment.
The workers laid off must be on muster rolls of
the establishments on the date of lay-off.
The reasons for deprivation of employment
must be shortage of coal or raw material,
power or accumulation of stocks or break
down of machines or some such reasons.
Contd…………
 The emergency leading to employers inability
must be temporary.
 Employer and employee relationship does not
come to an end but merely suspended during
the period of emergency.
 Difference between Lock-out and Lay-Off

 1.Lockout is the weapon in the hands of

employer to coerce or pressurize the workers to
come down to in their demands. It is the refusal
by an employer to continue to employ any
number of persons employed by him because of
closing of a place of employment or suspension
of work while layoff is declared by the employer
due to reason of shortage of coal, power or raw
material or accumulation of stock or breakdown
of machinery or for any other reasons beyond
his control which means that it is an
unintentional act
2. Lockout is the outcome of industrial dispute
and continue during the period of dispute but
layoff is not concerned in any way with labour
dispute
Lay -Off Meaning
 CLOSURE
• The term "closure" is defined under Section
2(cc) of the I.D.Act. It means the permanent
closing down of a place of employment or
part thereof.
RETRENCHMENT
Retrenchment ……………………contd.
Continued ill health: ill health means disease,
physical defect or infirmity or unsoundness,
i.e. an employee suffering from infirmity of old
age resulting in incapacity of work.
Difference Between Retrenchment and
Closure
1. Retrenchment means the discharge of
surplus labour only whereas closure affects
whole workmen.
2. In case of retrenchment, industry runs
uninterrupted whereas in closure the
business is discontinued.
 Difference between Lockout and
Retrenchment
1. In retrenchment, the business is continued
and only a section of labour is discharged but
in lockout, place of employment is closed by
the employer
2. In retrenchment no employment relationship
subsists while in lock out this relation is
continuous though it is temporalily
suspended.
Differences………………………..contd..
• 3. Lockout is with the main object to coerce
the labour while in retrenchment services of
surplus staff are to be dispensed with.
• 4. Lockout is the outcome of the Industrial
dispute whereas in retrenchment there is no
such dispute.
 Difference between Lockout and
Closure
1. Lockout is a weapon of coercion in the hands of
the employer whereas closure is generally for
trade reasons.
2. Lockout is declared during industrial dispute
while in case of closure there may not be any
such dispute.
3. The compensation payable on retrenchment
either on account of surplus labour or closure,
shall be equivalent to 15 days average pay for
every ompleted year of continuous service or
any part thereof in excess of sixth months.
 Differences ……………contd…
• Retrenchment as a result of bonafide closure
of business will not entail any compensation.
• 4. In lockout it is closure of place of business
only and not the closure of business itself,
while in closure not only the place of business
but the business itself is closed. In other
words in lockout place of business is closed
while in closure, both the business and the
place of business are closed.