Industrial Disputes Act,1947Preamble

An Act to make provisions for the investigation and settlement of industrial disputes, and for certain other purposes

Industry S (2.j)
1. Any systematic activity 2. Carried out with the cooperation of employers and employees 3. For production and distribution of material goods and services ( not merly spiritual or religious) 4. Sovereign functions are not industries [SC; Bangalore water Supply vs A Rajappa, AIR1978 SC 548
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Industrial Dispute
Industrial Dispute: means any dispute or difference between employers and workmen, or between workmen and workmen, which is connected with employment or non-employment or the terms of employment or with the conditions of labour, of any person. S.2(k)
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Workman (S.2s)
Any person employed in an industry to do any manual, unskilled, skilled, technical, clerical, etc. for hire or reward Doing non managerial work Drawing wages not exceeding Rs 1,600/ pm, if employed in a supervisory capacity Not engaged in sovereign functions Excluding persons covered by Army, Navy, Airforce Acts. Prison and police officials
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Procedure for Settlement of IDs

Grievance Procedure- Primary and Appellate ( In house) (S. 9-C) Bipartite Consultaions between the employer(s) and the employee(s) Through Conciliation for mediating or promoting a settlement ( S.4, 12) Voluntary reference to Arbitration (s.10-A) Reference to a Labour Court,Industrial Tribunal or National Industrial Tribunal for Adjudication (S. 10) Reference to a Board of Conciliation or a Court of Inquiry for promoting a settlement or inquiring into a Dispute (S.5,6)
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Works Committee Conciliation Officers Boards of Conciliation Courts of Inquiry Labour Courts Industrial Tribunals National Industrial Tribunals

Authorities Under The Act for Investigation/Settlement vof Disputes

Works Committtee (s.3)

Committtees which are to be constituted in establishments employing 100 or more workment, if so required by the Appropriate Government to: 1. Promote good relations 2. Common interests, and 3. Compose differences The Committee consists of equal no of representatives of workers and employersBipartite

Works Committee- Constitution

Election of representatives from amongst un-unioniosed workmen Nomination by registerd trade unions in proportion to their membership Labour machinery of the Appropriate Government decides the proportion of unionised workmen

Conciliation (S.12)
Where an ID exists or is apprehended, a CO may, or where the dispute relates to a public utility service and a notice of strike has been given U.S. 22, shall investigate the dispute and take steps to induce the parties to come to a just and fair settlement. He can also mediate. Memorandum of Settlement, or Failure of Conciliation Report to Approriate Government, within 14 days, or such further time as may be extended by all the parties in writing
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Steps involved in Adudication/Arbitration

Memorandum of settlement signed by the parties Failure of conciliation Report to Appropriate Government Voluntary Reference to Arbitration Reference for Adjudication to Labour Court/ Industrial Tribulanal/ National Industrial Tribunal
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Jurisdiction of Labour Court( 2nd Schedule)

Orders of employer under Standing Orders Interpretation of Standing Orders Discharge or dismissal of a workman Withdrawal of a customary concession Illegality of a strike or lock-out Matters other than those listed in the 3rd Schedule All disputes involving one hundred or less workmen ( S.10-first proviso)
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Jurisdiction of Industrial Tribunals

Wages and allowances Bonus, PF, Gratuity Classification of workmen, by grades Rules of Discipline Rationalisation Retrenchment of workmen and closure of establishments Any other matter that may be prescribed
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Powers of Labour Courts/Its (S 11A)

Power to reappraise evidence and modify the finding of guilt as well as the punishment awarded, keeping in view the gravity of the misconduct. Power to modify orders of discharge or dismissal, and impose lesser punishment or set aside the order completely However, Labour Courts/ITs can not admit fresh evidence.
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Right of workmen During Proceedings in Higher Courts

Employer has to pay the last drawn wages to wokmen reinsttated by Labour Courts/Its, when proceedings challenging the awrd of Lanour Court/Its are pending in higher courts, like the High court or the Supreme Court. (S 17B)

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Appropriate Government- Central Government

For Industrial dispute concering any industry carried on by or under the authority of the Union Government, a railway company, ports and docks, air transport, banking, insurance company, mine, Oilfield, IFC, LIC, UTI,ECGC,Industrial Reconstruction Corporation, ONGC, CWC,FCI, any Controlled Industry ( under the Industries Development and Regulation Act) Such other industries as are specifically listed in sec 2-A of the Act, like LIC, FCI, UTI, RBI, etc
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Appropriate Government- State Governments

All other industries, like NTPC, BHEL, Reliance, TISCO, TCS, Satyam, Wipro, Infosys, Big Bazar, Pantloon, India Bulls, LG, Apollo Tyres, Samsung, etc.

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Notice of Change (S.9-A)

Employer to give three weeks notice before making any change in the conditions of service on matters specified in the Fourth Schedule No notice required if the change is being effected in pursuance of a settlement or award; or workment are regulated by govt. regulations, like Fundamental Rules, Railway Rules, Defence Service Rules, etc.

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 Wages, allowances, hours of work, leave, etc. Classification of workmen by grades Change in usage, withdrawl of customary concessions New rules of discipline Rationalisation, Improvement in plant or technique likely to lead to retrenchment of workmen
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Conditions of Service Change in which requires Notice of Change(Sch- IV)

Notice of change (contd.)

Any increase or reduction (other than casual) in the number of persons employed or to be employed by circumstances over which the employer has no control.

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Settlement
Is a written agreement signed by the parties in the prescribed manner, a copy of which has been sent to an officer authorised by the govt. It includes a settlement reached in conciliation proceedings. (S.2-p) Conciliation settlement binds all present and future workmen [S. 18(3)]; other settlements bind only those whom signatories represent

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Period of Operation of Settlement/ Award (s.19)

Period as agreed in the Settlement, or as directed in the award. When no period prescribed: Settlement- 6 months Award- one year from the date on which it came into force However, a 2 months notice is required, from the party representing the majority of persons bound by the Settlement/Award for their termination. If no notice is given, they will continue till replaced.
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Strike (s.2q)
Strike is cessastion of work by a body of persons employed in an industry, acting in combination, or a concerted refusal, or a refusal to continue to work under a common understanding

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Lockout (S.2-l)
Temporary closing of a place of employment, or a suspension of work, or refusal by an employer to continue to employ any number of persons employed by him.

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Public Utility Service [S.2 (n)]

Any railway service, air transport, major ports and docks, post, telegraph or telephone service, power supply, light or water supply, public conservation or sanitation; any section of an industrial establishment on the working of which the safety of the establishment depends. Any industry specified in the first schedule which is notified as Public Utility Service for such period as may be specified.
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First schedule ( Industries which can be notified as Public Utility servics) Land or water transport, Banking, Cement, Coal, Cotton, Food stuffs, Iron and steel, Defence establishments,hospitals and dispensaries,fire brigade, mints, mining, nuclear fuel and atomic energy,Oil and gas, International airport Authority, etc

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Prohibition of Strikes/ Lock-Outs (Public Utility services-PUS)(S.22)

No person employed in a PUS will go on S in breach of contract : 1. Without giving 6 weeks notice to the employer before striking 2. Within 14 days of giving such notice 3. Before expiry of the date of strike specified in the notice 4. During Conciliation proceedings before a CO, and 7 days thereafter No employer of a PUS shall lock-out any of his workmen without following a similar procedure.
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General Prohibition of Strikes/ Lock-Outs (S.23)

No workman employed in any industrial establishment shall go on strike in breach of contract and no employer of any such workmen shall declare a lockout: During conciliation before a Board, and seven days thereafter During adjudication ( before a Labour Court, Industrial Tribunal or a National Industrial Tribunal), or arbitration, and 2 months thereafter During any period in which a settlement or award is in operation, in respect of matters covered by the settlement/award
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1. 2.

3.

Power of Government to Prohibit Continuance of Strike/Lock-Out

Appropriate Government can prohibit the continuance of a S/L in connection with such dispute which may be in existence on the date of the reference to adjudication [S 10 (3)]/arbitration [S 10-A (4-A)]

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Illegal Strikes (s)/Lock-Outs (L)

A S/L shall be illegal if: It is commenced or declared in contravention of S.22 or S.23 Where an ID (indistrial dispute) has been referred to adjudication/arbitration, and the S/L is continued in contravention of an order of Appropriate Government prohibiting such continuance A L declared in consequence of an illegal S, and vice-versa, shall not be deemed to be illegal
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Illegal strike/ Unjustified Strike

Legality of a strike has nothing to do with its justification The general principle for deciding whether pay will be given for the period of strike ic: no work No Pay.

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Exit Provisions
Provisions relating to lay-off, retrenchment and closure and govt.s control on these is generally known as Exit Provisions

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Layoff
Failure, refusal or inability to employ on account of shortage of coal, power,raw material, break down of machinery, accumulation of stocks, natural calamity, etc.

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Retrenchment
Termination of a workman whose name is on the muster rolls of the establishment by the employer, otherwise than a punishment. It does not include: 1. Voluntary retirement 2. Retirement 3. Termination on non-renewal of contract
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Closure
Permanent closing of a place of employment or part thereof

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Lay-Off, Compensation (S.25-B)

Workmen who have completed not less than one year of continuous service shall be paid 50% of their wages (basic salary and DA) for the period of lay-off. If the lay-off continues beyond 45 days, workmen may be retrenched, after notice of one month (or pay in lieu thereof) and compensation @ 15 days average wages for each completed year of service ( S.25-F) Retrenchment should be done according to seniority, Last come-first go. Seniority list should be displayed at least seven days before the retrenchment. Retrenched workmen are entitled to preference if the employer hires again.
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Lay-Off, Procedure, Duration (S.25-B)

Must be notified through the notice board. Workers must be informed: (i) as to whether they have to remain on the place of work, or leave. (ii) If they have to leave, when work will be resumed. If asked to come in the second shift, it will be treated as lay-off for half a day, and compensation payable accordingly. Lay-off for full day, if workmen detained for two hrs or more. For a short period of lay-off, workmen may be treated as on compulsory leave, if there is a provision to this effect in the standing Orders of the establishment.

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Conditions Precedent To Retrenchment

One months notice to affected workmen of the reasons and the date of retrenchment, or one months pay in lieu of notice. Fifteen days average pay for each completed year of service, or any part thereof in excess of six months Display on the notice board the seniority list of workmen from whom retrenchment is contemplated (Rule 77)-Last come first go
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Conditions Precedent to Closure

Sixty days notice to affected workmen of intended date of closure and the reasons for retrenchment (and appropriate govt., if the establishment employs 50 or more workmen). Compensation and other procedure, as if the workmen were to be retrenched. If it is an undertaking for construction of buildings, bridges, roads, dams or other construction work or project, and if the work is completed within 2 years, no compensation is to be paid.
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Transfer of an Undertaking (S. 25FF)

Where ownership or mangement of an undertaking is transferred whether by agreement or operation of law from the employer to a new employer, every workman with service of one year or more is entitled to notice and compensation according to S 25-F, as if the workman had been retrenched. However, if the service has not been interrupted by the transfer, and the terms and conditions of service under the new employer are not in any way less favourable. No notice and compensation is required
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Govts Control on Lay-Off Retrenchment and Closure (Chapter V-B)-Exit Provisions

Provisions apply only to factories, mines or plantations employing 100 or more workmen Application for permission to lay off to be made to the Appropriate Govt. Application to appropriate govt. to continue lay-off should be made within 30 days of commencement of lay-off, if lay-off is due to power shortage or due to natural calamities, flood, fire, etc. Application for prior permission for retrenchment should be made 90 days before the intended retrenchment/closure Permission is deemed to have been granted if appropriate govt. does not communicate its order within 60 days
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Unfair Labour practices- Sch V (S 25 T-U)

ON THE PART OF EMPLOYERS: To interfere with workmens right to organise and collective bargaining and in concerted activities, eg to threaten workmen with discharge if they join a trade union To dominate, interfere or contribute to any trade union Discharging active members or office bearers of a trade unions
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Unfair Labour practices- Sch V (S 25 T-U)- contd.

To take good conduct bond as a precondition to allow workers to resume work after a legal strike. To employ badlis, casuals, temporaries and to continue them for years to deny them the privileges of a permanent workman Failure to implement award or settlement To refuse to bargain collectively in good faith with recognised trade union

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Unfair practices on the part of workmen and their trade unions

T advise, support or instigate illegal strike To coerce workmen to join or not to join a trade union Picketing, violence, wilful go slow, squatting on work premises, gherao, To stage demonstration at residence of employers/managers Damage to employers property connected with industry To threaten or intimidate workmen to prevent them from attending work
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Punishment under ID Act

1. Unfair Labour Practice: Imprisonment upto 6 months, or fine upto Rs 1,000 (s.25-U) 2. Illegal Strike/ Lockout: 1 month, Rs 50/ Rs 1,000. ( S.26); Instigation/financing of illegal S/L: 6 months/ Rs 1,000. 3. Illegal lay off, retrenchment closure: 6 months/ Rs 5,000 ( S. 25-R, S 30A) 4. Breach of settlement or award: 6 months/ Rs 2,500 per day of breach (S.29)
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Conditions of service, etc, to remain unchanged During pendency of proceedings (S 33) During the pendency of Conciliation or adjudication proceedings, for any misconduct connected with the dispute, no employer shall alter conditions of service, discharge, dismiss or punish any workman concerned with such dispute, without permission in writing of the authority. For misconduct not connected with the dispute no workman shall be discharged or dismissed, unless he has been paid wages for one month, and making an application for approval of the action taken.
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Protected Workman [S 33(3)]

No employer shall punish or take any action against a protected workman during any such proceedings without permission in writing of the authority. Protected workmen are officers of registered trade unions, recognised by the employer. Limit of 1% of the total no of workmen employed in the estt. Min5, maximum no 100.
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Recovery of Money due Under a Settlement/Award etc from An Employer (S.33) Workman can make an application to Appropriate Government for issuing a certificate for that amount to the Collector for recovery as arrears of land revenue Application to be made within a year. Government can extend time upto three months for sufficient cause Application to Labour Court by workmen for computing the amount of money due
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Power of Government to Modify an Award

If the Government is of the opinion that it will be inexpedient on public grounds affecting national economy or social justice, it may by notification declare that the award shall not become enforceable Thereafter, within 90 days from the date of publication of the award, Government may make an order rejecting or modifying the award. Lay the award and the order before the legislature ; and the modified/ rejected award shall become enforceable on the expiry of 15 days after it is laid befor the legislature.
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