1 | Page

CHANAKYA NATIONAL LAW UNIVERSITY,

PATNA

LABOUR COURT UNDER INDUSTRIAL

DISPUTE ACT

Subject- LABOUR LAW-2

Faculty - Submitted by:

Dr. S.C.ROY Name - Shweta

Semester -5th

Roll No 813
2 | Page

ACKNOWLEDGEMENT

It is my greatest pleasure to be able to present the project topic LABOUR COURT UNDER
INDUSTRIAL DISPUTE ACT of Labour Law-2. I found it very interesting to work on this
project. I would like to thank my teacher, Dr.S.C.Roy, for providing me with such an
interesting project topic and for his constant support and guidance.

I would also like to thank my librarian for helping me in gathering data for the project. Last,
but not the least, I would heartily thank my family and friends for their unwavering support
without which this work would not have been possible.

I hope that the readers will appreciate this project work.

Shweta.....
3 | Page

AIM AND OBJECTIVE

The aim of doing this project was to know the provisions of Industrial Dispute Act and
the role of Labour Court in it.

SCOPE AND LIMITATION

Though the scope of this project is very wide and pages could be written on this project topic
but due to certain limitations the researcher had to curtail his study.

HYPOTHESIS
Earlier the researcher was of the view that Labour Court had no function in industrial dispute
and also it did not perform its duties well but after completion of this project the researcher
was proved to be wrong. The labour Court has wide functions and it takes care of the
industrial dispute of all firms.

MODE OF CITATION
The researcher has used Explanatory mode of citation in the entire project.
4 | Page

TABLE OF CONTENTS
1. INTRODUCTION

2. LABOUR COURT

3. FUNCTIONS OF LABOUR COURT

4. CONCLUSION

5. BIBLIOGRAPHY
5 | Page

INTRODUCTION

The Industrial Disputes Act 1947 extends to the whole of India and regulates Indian
labour law so far as that concerns trade unions. It came into force April 1, 1947. The
objective of the Industrial Disputes Act is to secure industrial peace and harmony by
providing machinery and procedure for the investigation and settlement of industrial disputes
by negotiations.

The laws apply only to the organised sector. Chapter V-B, introduced by an amendment
in 1976, requires firms employing 300 or more workers to obtain government permission for
layoffs, retrenchments and closures. A further amendment in 1982 (which took effect in 1984)
expanded its ambit by reducing the threshold to 100 workers.

The Act also lays down the provision for payment of compensation to the workman on
account of closure or lay off or retrenchment. The procedure for prior permission of
appropriate Government for laying off or retrenching the workers or closing down industrial
establishments. Unfair labour practices on part of an employer or a trade union or workers.

The Industrial Disputes Act extends to whole of India and applies to every industrial
establishment carrying on any business, trade, manufacture or distribution of goods and
services irrespective of the number of workmen employed therein.

Every person employed in an establishment for hire or reward including contract

labour, apprentices and part-time employees to do any manual, clerical, skilled, unskilled,
technical, operational or supervisory work, is covered by the Act.

This Act though does not apply to persons mainly in managerial or administrative
capacity, persons engaged in a supervisory capacity and drawing > 10,000 p.m or executing
managerial functions and persons subject to Army Act, Air Force and Navy Act or those in
police service or officer or employee of a prison.
6 | Page

LABOUR COURT
"Labour Court" means a Labour Court constituted under section 7. Lay-off means the
failure, refusal or inability of an employer on account of shortage of coal, power or raw
materials or the accumulation of stocks or the breakdown of machinery 5*[or natural
calamity or for any other connected reason] to give employment to a workman whose name
is borne on the muster rolls of his industrial establishment and who has not been retrenched.

Every workman whose name is borne on the muster rolls of the industrial establishment
and who presents himself for work at the establishment at the time appointed for the purpose
during normal working hours on any day and is not given employment by the employer
within two hours of his so presenting himself shall be deemed to have been laid-off for that
day within the meaning of this clause.

Provided that if the workman, instead of being given employment at the commencement
of any shift for any day is asked to present himself for the purpose during the second half of
the shift for the day and is given employment then, he shall be deemed to have been laid- off
only for one-half of that day provided further that if he is not given any such employment
even after so presenting himself, he shall not be deemed to have been laid-off for the second
half of the shift for the day and shall be entitled to full basic wages and dearness allowance
for that part of the day.

Labour Courts.- The appropriate Government may, by notification in the Official

Gazette, constitute one or more Labour Courts for the 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.
7 | Page

A Labour Court shall consist of one person only to be appointed by the appropriate
Government. A person shall not be qualified for appointment as the presiding officer of a
Labour Court, unless-- He is, or has been, a Judge of a High Court; or he has, for a period of
not less than three years, been a District Judge or an Additional District Judge. He has held
any judicial office in India for not less than seven years.

He has been the presiding officer of a Labour Court constituted under any Provincial Act or
State Act for not less than five years. 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 5*[and for performing such other functions as may be assigned to them under this
Act.
8 | Page

FUNCTIONS OF LABOUR COURT

1. Adjudication of industrial disputes relating to any matter specified in the Second Schedule.

2. Performing of such other functions as may be assigned to them under this Act.

The following matters are specified in the second schedule:

1. The proprietary or legality of any 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 workmen wrongfully

dismissed.

4. Withdrawal of any customary concession or privilege.

5. Illegality or otherwise of strike or lock-out.

6. All matters other than those specified in Third schedule.

9 | Page

CONCLUSION
Industrial Dispute means any dispute or differences 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 of employment or with the conditions
of labour of any person. The Second Schedule of the I.D. Act deals with matters within the
jurisdiction of Labour Courts which fall under the category of Rights Disputes.

Any person who is a workman employed in an industry can raise an industrial dispute. A
workman includes any person (including an apprentice) employed in an industry to do
manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or
reward. It excludes those employed in the Army, Navy, and Air Force and in the police
service, in managerial or administrative capacity. 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.

A workman can raise a dispute directly before a Conciliation Officer in the case of
discharge, dismissal, retrenchment or any form of termination of service. In all other cases
listed at 2 above, the dispute has to be raised by a Union / Management.

In case of failure of conciliation (FOC) a report is sent to Government (IR Desks in

Ministry of Labour). The Ministry of Labour after considering the FOC Report exercises the
powers available to it under Section 10 of the Industrial Disputes Act and either refers the
dispute for adjudication or refuses to do so. Details of functions of IR Desks and reasons for
declining may be seen above.

After the matter is referred to any of the CGIT-cum-Labour Court, the adjudication
process begins. At the end of the proceedings an Award is given by the Presiding Officer. The
10 | P a g e

Ministry of Labour under Section 17 of the I.D. Act publishes the Award in the Official
Gazette within a period of 30 days from the date of receipt of the Award.

BIBLIOGRAPHY
BOOKS

1. INDUSTRIAL DISPUTE ACT, 1947, BARE ACT.

2. LABOUR LAW by S.N.MISHRA.