Industrial Disputes Act -1947


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Applicability of the Act: The Act came in to force on the 1st day of April 1947 The Act Extends to the whole of India.

Certain Important Provisions: 1. Prohibition of Strikes and Lockouts (Section 22): No person employed in public utility service shall go on strike in breach of contract : i) without giving the employer notice of strike, within 6 weeks before the strike. ii) within14 days of giving such notice. iii) before expiry of the date of the strike specified in the notice, iv) during pendency of any conciliation proceedings before a conciliation officer.


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No employer carrying on any public utility service shall lockout any of his workmen i) without giving them notice of lockout within, six weeks before the lockout, ii) within 14 days of giving such notice or iii) before expiry of the date of lockout specified in such notice iv) during pendency of any conciliation proceedings before a conciliation officer and 7 days after the conclusion of such proceedings. v) The notice of lockout or strike under the Act shall not be necessary where there is already in existence a strike or lockout in the public utility service, but the employer shall send intimation of such strike of lockout, on the day on which it is declared, to the specified authority (set up by the government)

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General Prohibition of Strikes and Lockouts (Section 23) No workman who is employed in any industrial establishment shall go on strike in breach of contract and no employer of any such workman shall declare a lockout During pendency of conciliation before a Board and 7 days after the conclusion of such proceedings During pendency of proceedings before a labor court, Industrial tribunal, National tribunal and 2 months after the conclusion of such proceedings. During pendency of arbitration proceedings before an arbitrator and 2 months after the conclusion of such proceedings. During any period in which a settlement or award is in operation in respect of any of the matter covered by the settlement of award.

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Illegal Strikes and Lockouts: A strike or lockout shall be illegal if It is commenced or declared in contravention of Section22, or Section 23 of the Act. It is continued in contravention of an order issued on the matter. Where a strike or lockout in pursuance of an industrial dispute has already commenced and is in existence at the time of reference of the dispute to a board an arbitrator, Labor court, Tribunal or National Tribunal, the continuance of such strike or lockout shall not be deemed to be illegal, provided such strike or lockout was not at its commencement in contravention of the provision of the Act. A lockout declared in consequence of an illegal strike shall not be deemed to be illegal.

Lay-off : means failure, refusal or inability of an employer on account of shortage of coal, power, raw material, or accumulation of stock or breakdown of machinery or natural calamity or any other connected reasons, to give employment to a workman whose name is registered in the muster roll of his establishment, and who has not been retrenched. To be eligible for lay off compensation, a workman should have been in continuous service for a period of one year. Continuous service means the workman has given uninterrupted service (including service which may be interrupted on account of sickness, or authorized leave or an accident or strike which is not illegal, or lock out or cessation of work which is not due to any fault on part of the workman). Where a workman is not on continuous service he shall be deemed to be so if the workman has been employed for a period of 190 days underground in mines or 240 days in any other case.

Rights of Workman Laid off : Whenever a workman(other than a Badli workman or 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 the days during which he is laid off, except for such weekly holidays as may intervene, compensation which shall be equal to 50% of total basic wages and dearness allowance that would have been payable to him had he not been laid off. Provided that, where the lay-off is on account discontinuance or reduction of the supply of power to the industrial establishment, in which case compensation payable to the workmen shall be equal to hundred percent of the total of basic wages and dearness allowance that would have been payable to him had he not been so laid off. For payment of layoff compensation the workman will present himself everyday at the place of work and be there for 2 hours.


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Provided that during any period of 12 months a workman is laid off for 45 days, no such compensation shall be payable in respect of any period of the lay off after the expiry of 45 days, if there is an agreement to that effect between the workman and employer. After the completion of 45 days the employer has the power to retrench the workman and while doing so the employer may deduct from the lump sum amount of retrenchment compensation the total amount paid during the lay off period to the workman. No compensation shall be paid to a workman:If he refuses to accept any alternative employment in the same establishment or in any other establishment belonging to the same employer situated in the same town or village or situated within 5 miles from the establishment to which the workman belongs, provided that the wages in the alternative employment are the same as that of the previous ones. If he does not present himself for work at the establishment at the appropriate time during working hrs once a day.

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If such layoff is due to a strike or slowing down of production on the part of the workmen in another part of the of the establishment. Prohibition of Layoff : No workman (other than a Badli workman or casual workman), whose name is borne on the muster-rolls of an industrial establishment to which this Act 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. An application for permission shall be made by the employer in the prescribed manner, stating clearly the reasons for the intended lay off and a copy of such application shall be served simultaneously to the workmen The appropriate government will then make inquiries and then either grant or not grant permission, which it can later review if required.

Retrenchment: It is the termination of service of the workman by the employer for any reason whatsoever other than a punishment inflicted by way of disciplinary action. Voluntary retirement, superannuation, termination of employment on grounds of health, do not amount to retrenchment. No workman who has been employed for one year can be retrenched until:He has been given one months notice in writing indicating the reasons for retrenchment and the period of notice has expired, or the workman has been paid in lieu of such notice wages for the period of the notice. The workman has been paid compensation equivalent to 15 days average pay for every completed year of service or any part thereof in excess of 6 months. Notice in the prescribed manner is served on the appropriate Government.

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Procedure of Retrenchment: The well recognized principle of retrenchment in Industrial Law is first come last go and last come first go. This principle has been incorporated in this Act. The following further obligations lie on the employer on the matter of retrenchment: Maintenance of Muster-roll: The employer must maintain a muster roll as required under Section 25D of Industrial Dispute Act-1947. Seniority list: The employer should prepare a list of all workmen in the particular category from which retrenchment is contemplated, arranged according to seniority of their service in the category. A copy of this list should be affixed on the notice board at a prominent place in the establishment at least 7 days before the actual date of retrenchment. Retrenchment is to be as per Statutory provisions in Section 25G.Normally the junior most should be retrenched first, if that is not done then sufficient reasons for that should be recorded.

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Re-employment(Section25H): The retrenched employee has a statutory right to reemployment if the employer proposes to take into employment in future any persons, in which case the retrenched staff has a right of preference over other persons. Relief in case of unjustified retrenchment: A workman who has been improperly retrenched has a right to reinstatement, even if someone else has been engaged in his place and order for payment of remuneration for the period the employee remained unemployed may be made by the Industrial Tribunal.