INDUSTRIAL DISPUTES ACT 1947

Came into force on 1st April 1947 Consists of 40 sections & 5 schedules

OBJECTIVE AND SCOPE of the act

To make provision for the investigation and settlement of industrial disputes. Regulating the relations of employers and workmen, past, present and future. Encourage collective bargaining and to maintian industrial peace. By preventing illegal strikes and lockouts and to provide layoff and retrenchment compensations. Ensure social justice to both employers and employees Advance the progress of industry by bringing about cordial relationship between the parties.

IMPORTANT FEATURES
Act extends to whole of India including the state of Jammu and Kashmir. 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. It lays down a comprehensive machinery for the prevention and settlement of industrial disputes.

IMPORTANT FEATURES continued

The main emphasis of the act is on compulsory adjudication besides conciliation and voluntary arbitration of industrial disputes. The act empowers the Government to make reference of the dispute to an appropriate authority, viz. labour court, industrial tribunal, and national tribunal, depending upon the nature of dispute. The right to strike by the workers and lock-out by the employers has been subjected to restrictions . Certain practices on the part of employers and workmen have been declared as unfair practices, and provision for penalties has also been made.

Some Important Definitions

Appropriate Government Sec.2(a)

The Central Government is appropriate in respect of industrial disputes arising in the following industries  Industry carried on by or under the authority of the Central govt.  Industry carried on by a railway company  Industrial finance Corporation of India Ltd.  The employees State Insurance Corporation.  The Indian Airlines and Air India Corporation  The Life Insurance Corporation of India  Oil and natural Gas Corporation of India  The Unit Trust of India

Food Corporation of India Airport Authority of India Regional Rural Banks Exports Credit and Guarantee Corporation Ltd. Industrial Reconstruction Corporation Ltd. A Banking Company An Insurance company A mine An Oil field Cantonment Board A major Port

 In relation to any industrial dispute other than those specified above, the appropriate government would be State Government.

Average Pay Sec. 2 (aaa)

Monthly paid workmen the average of wages paid for three complete calender months. Weekly paid workmen the average of wages paid for four complete weeks Daily paid workmen the average of wages paid for twelve full working days.

Industry - Sec. 2(j)

Any systematic activity carried on by the cooperation between an employer and his workmen whether such workmen are employed by such employer or by any agency including a contractor for the production, supply or distribution of goods or services with a view to satisfy human wants or wishes.

Industry doesn t include ..

Any agricultural operation with certain exceptions Hospitals or dispensaries Educational, scientific, research or training institutions Charitable institutions, social service organisations Khadi or village industries Professional activity by an individual or body of individuals if the members are below 10etc.

Industrial Dispute Sec. 2. (k)

There must be some difference or dispute. The difference or dispute must be between Employers & employers; or Employers & workmen;or Workmen & workmen. The dispute should be connected with the employment or non-employment; or _the terms of emplyment; or _the conditions or labour of each person. The dispute should relate to an industry as defined in Sec. 2 (j)

Lay-off Sec. 2(kkk)

There must be failure, refusal or inability on the part of the employer to give work to the workman. On account of Shortage of coal, power or raw materials, breakdown of machinery or natural calamity. Any other connected reason.

Lock-Out Sec. 2(L)

It means temporary closing of a place of employment or the suspension of work or the refusal by an employer to continue to employ any number of persons employed by him. Lock out indicates the temporary closure of the place of business and not closure of business itself. It is an instrument if coercion exerted by an employer.

Public Utility Service Sec. 2(n)

Any railway service or transport service for carriage of passengers or goods by air Any service in connection with the working of any major port or dock Any postal, telegraph or telephone services Any industry supplying power, light or water to the public Any system of public conservancy or sanitation.

Retrenchment Sec 2. (oo)

Retrenchment means discharge of surplus labour or staff. It may be due to
For economy Installation of new labour saving machinery..etc

Retrenchment does not include

Voluntary retirement Retirement of workman on reaching the age of superannuation Continued ill health

Strike Sec. 2 (q)

A cessation of work by a body of persons employed in any industry acting in combination, or a concerted refusal or a refusal under a common understanding of any number of persons who are or have been so employed to continue to work or to accept employment.

Essential Features of Strike

There should be cessation of work. Such cessation of work should be by a body of persons employed in any industry acting in combination; or There should be a concerted refusal or a refusal under common understanding ; and The persons refusing should be those who have been employed . Mere absence from work will not amount to strike. Strike does not by itself terminate the relationship of employer and employee. The duration of the strike is irrelevant.

Wages Sec. 2 (rr)

It means all remuneration capable of being expressed in terms of money which would if the terms of employment were fulfilled be payable to a workman in respect of his employment or of work done in such employment.

 Essential requirements which have to be fulfilled before a payment can be called wages:  It should be by way of remuneration.  It should be capable of being expressed in terms of money.  It should be payable to a workman in respect of his employment or work done in such employment.  It should be payable if the terms of employment are fulfilled.

Wages include ..
Any allowances as the workman is being entitled to The value of any house accommodation or of supply of light, water, medical attendance or other amenity or of any service. Any travelling concession Any commission payable on the promotion of sales or business or both.

Wages exclude.
Any bonus Any contribution paid or payable by the employer to any pension fund or provident fund. Any gratuity payable on the termination of service.

Workman Sec 2(s)

The term means any person (including an apprentice) employed in any industry to do any skilled or unskilled, manual, supervisory, technical or clerical work for hire or reward, whether the terms of employment be expressed or implied.

Workman includes .
Any person who has been dismissed, discharged or retrenched in connection with an industrial dispute. Any person whose dismissal, discharge or retrenchment has led to dispute.

Workman excludes
Any person subject to Army Act, Air Force Act or Navy Act, or Any person in the police service or an employee of a prison; or Any person employed in a managerial or administrative capacity; or Any person in supervisory capacity drawing wages more than rupees one thousand six hundred per month or exercising functions mainly of a managerial nature.

General Scheme of the Act

Chapter I Deals with the preliminary matters like the title, extent, important definitions. Chapter II Deals with the various authorities under the Act and how they are constituted Chapter III relates to reference of disputes to various authorities. Chapter IV deals with the procedures, powers and duties of authorities. Chapter V deals with strikes, lockouts, their prohibition, illegal strikes, layoff, retrenchment, compensation, re-employment of retrenched workers, and unfair labour practices.

 Chapter VI deals with the penalties for illegal strikes and lockouts, instigation, breach of settlement and other offences. Chapter VII deals with miscellaneous provisions .

5 Schedules
Schedule 1 specifies industries which may be declared to be public utility services Schedule 2 deals with matters within the jurisdiction of Labour courts Schedule 3 deals with matters within the jurisdiction of Industrial Tribunals. Schedule 4 mentions the conditions of service for change of which notice is to be given. Schedule 5 deals with unfair practices.

I. Voluntary settlement and conciliation

Works Committee Conciliation Officer Board of Conciliation With the help of third parties Labour court Industrial Tribunal National Tribunal

Modes of Settlement of Industrial Disputes

II. Arbitration III.Adjudication

Voluntary settlement and conciliation

Conciliation may be described as : the practice by which the services of a neutral third party are used in a dispute as a means of helping the disputing parties to reduce the extent of their differences and to arrive at an amicable settlement or agreed solution.

Authorities for Voluntary Conciliation

1. Works Committee (Section 3) Section 3 of the Act empowers the appropriate government to constitute a works committee. The works Committee must be composed of the representatives of the employers and the workmen and must be equal in number. The tenure of the office or representatives is for two years. They meet not less than once in 3 months.

Duties & Functions of works committee

Discuss grievances. Enter into agreement with the employer on changes in conditions of service. To encourage collective bargaining To compose differences by making recommendations, although the final decision rests with the union and the employer.

2. Conciliation Officer (Section 4)

It is discretionary on the part of the appropriate government to appoint conciliation officers. The government can appoint such number of persons, as it thinks fit, as conciliation officers. He/she may be appointed for a specified area or for specified industries either permanently or for a limited period. The act of conciliation is compulsory in all disputes in public utility services and optional in other industrial establishments.

Duties of conciliation officer (Section 12)

He/she may hold conciliation proceedings in the prescribed manner. Section 12(2) imposes a duty on conciliation officer to investigate disputes without delay and empowers him to do all such things that he deems fit to reconcile the parties. If he succeeds he is required to make a report to the appropriate government along with the memorandum of settlement signed by the parties.

 In case of failure to reconcile the officer is required to make a report to the appropriate government and give a full statement of facts and circumstances and reasons on account of which a settlement could not be arrived at. The conciliation officer must submit the report within 14 days of the conciliation proceedings or within such shorter period as may be fixed by the govt.

3. Board of Conciliation (Section5)

The Board of conciliation may be constituted by notification in the official gazette. The board is appointed for promoting the settlement of industrial disputes. The board shall consist of a chairman and two or four other members as the appropriate gov. thinks fit. The chairman of the board must be an independent person./