1 the industrial disputes act 1947

7/31/2019 1 the Industrial Disputes Act 1947

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The Industrial Disputes

Act 1947


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Chapter I - Preliminary

Section 1: Short title, extent andcommencement

- may be called as Industrial Disputes Act1947

- Extended to whole of India

- Commenced from first day of April 1947

- It Consists of 81 Sections and 5schedules


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Objects of the Act

The promotion of measures for securingamity and good relations between theemployer and workmen.

An investigation and settlement of industrialdisputes.

The prevention of illegal strikes and lock-outs.

Relief to workmen in the matter of lay-off,retrenchment and closure of anundertaking.

Collective bargaining.


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Main Features of the Act

Any industrial dispute may be referred toan industrial tribunal by an agreement ofparties to the dispute or by the State

Government.

An award shall be binding on both theparties to the dispute for the specified

period not exceeding one year. It shall benormally enforced by the Government.


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Strikes and lock-outs are prohibited: During the pendency of conciliation and

adjudication proceedings During the pendency of settlements reached in

the course of conciliation proceedings

During the pendency of awards of Industrial

Tribunal declared binding by the appropriateGovernment.

In public interest or emergency the

appropriate Government has power todeclare the transport, coal, cotton textiles,food stuffs and iron & steel industries to bea public utility service.


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In case of lay off or retrenchment of

workmen the employer is required to paycompensation to them.

Provision has also been made for

payment of compensation to workmen incase of transfer or closure on anundertaking.

A number of authorities are provided forsettlement of industrial disputes.


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Chapter I Preliminary

Section 2: Definitions

( a) Appropriate Government

(b) Award(cc) Closure

(g) Employer

(j) Industry(k) Industrial Dispute


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Chapter I Preliminary

Section 2: Definitions

(kkk) Layoff

(l) Lock-out(oo) Retrenchment

(q) Strike

(s) Workman


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Chapter II- Authorities under the Act

I. Works Committee (Section 3)

II. Conciliation Officer Section 4)

III. Boards of Conciliation (Section 5)

IV. Courts of Inquiry (Section 6)

V. Labour Courts:

Section 7: Constitution of Labour Court,Trbunals andNational Tribunals

Section 10: Reference of Dispute

Section 11: Procedure and Power

Section 15: Duties


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The Third Schedule

1. Wages, including the period and mode of payment;

2. Compensatory and other allowance;3. Hours of work and rest intervals;

4. Leave with wages and holidays;

5. Bonus, profit sharing, provident fund and gratuity;

6. Shift working otherwise than in accordance withstanding orders

7. Classification by grades

8. Rules of discipline

9. Rationalisation

10. Retrenchment of workmen and closure ofestablishment

11. Any other matter that may be prescribed


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The Industrial Disputes Act1947

Report and Award

Section 16: Form of Report or AwardSection 17: Publication of Report

Section 17A: Commencement of the awards


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The Industrial Disputes

Act 1947Settlement and Award

Section 2p and 2b: DefinitionSection 18: Persons on whom settlementsand awards are binding

Section 19 Period of operation of settlementsand awards

Section 29: Penalty for breach of Settlementor award


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Strikes&

Lock-outs


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Strikes and Lock-outs

Definition

Under Section 2q

Strike means a cessation of work by a body

of persons employed in any industry acting incombination

or a concerted refusal, or a refusal, under acommon understanding of any number ofpersons who are or have been so employedto continue to work or to accept employment.


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Under Section 2l

Lock-out means the temporary closing ofa place of employment

or the suspension of work, or the refusal byan employer to continue to employ anynumber of persons employed by him.


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Strikes and Lock-outsSection 23: General prohibition of Strikes

and Lock-outsNo workman is allowed to go on strike

- during the pendency of conciliation proceedingsbefore Board of Conciliation and 7 days afterconclusion.

- during the pendency of proceedings beforeLabour Court / Tribunal / National Tribunal and2 months after conclusion.

- during the pendency of arbitration proceedingsand 2 months after conclusion.

- during any period in which a settlement or

award is in operation.


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Section 22: Prohibition of Strikes andLock-outs (in public utility services)

A person employed in PUS must not go onstrike

- without giving a notice of strike within 6weeks before striking.

- within 14 days of giving such notice.

- before the expiry of the date of strikespecified in the notice

- during the pendency of conciliationproceedings before a conciliation officer and

7 days after conculsion.


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Section 24: Illegal Strikes and Lock-outsStrikes or lock- out is illegal in following cases

- if it commenced or declared in contravention of

the provisions of sec. 22 & 23- if it continued in contravention of an order

passed by appropriate government forprohibition of strike/ lockout (when dispute was

referred to Authorities).- if it is continued in contravention of an order

passed by appropriate government (whendispute was referred to Arbitration).


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Section 25: Prohibition of financial aid toillegal Strikes and Lock-outs

Act Prohibits expending or applying any moneyin direct furtherance or support of any illegal

strike.Section 26: Penalty for illegal strikes andlock-outs

Participating in illegal strike in punishable with

imprisonment up to 1 month or fine up to Rs.50 or both

Declaring by an employer an illegal lock-out ispunishable with imprisonment up to 1 month

or fine up to Rs. 1000 or both.


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Section 28: Penalty for giving financialaid to illegal strikes and lock-outs

Any person, who instigates or incites anotherperson to take part in, or finances anyillegal strike or lock-out is punishable withimprisonment up to 6 months or with fine

up to Rs. 1000 or both.


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Lay-off, Retrenchment

&Closure


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Lay-off, Retrenchment & Closure

Definition

Under Sec. 2kkk

Lay-off means the failure, refusal or inabilityof an employer on account of shortage ofcoal, power or raw materials or the

accumulation of stocks or the breakdown ofmachinery to give employment to a workmanwhose name is borne on the muster rolls ofhis industrial establishment and who has not

been retrenched.

L ff R t h t &


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Lay-off, Retrenchment &Closure

Under Sec. 2oo

Retrenchment means the termination by theemployer of the service of a workman forany reason whatsoever, otherwise than as apunishment inflicted by way of disciplinary

action.


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Section 25A: Application of Section 25Cand 25E

The provisions of the act do not apply to anindustrial establishment

- in which less than 50 workmen areemployed.

- which is of a seasonal character.

L ff R t h t &


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Section 25C: Right of workmen laid-offfor compensation

- The workman whose name is borne on the

muster rolls and who has completed oneyear continuous service, is laid-off is entitledto compensation.

- Compensation should be equal to 50% of thetotal basic wages and dearness allowance.

- If workman has been laid-off for more than45 days, no compensation is payable after

the expiry of first 45 days.

Lay off Retrenchment &


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Section 25 E: Workman not entitled tocompensation

Workman is not entitled to compensation underfollowing cases

- if he refuses to accept any alternativeemployment under same employer

- if he does not present himself for work at theestablishment at the appointed time atleast

once a day.- if such laying-off is due to a strike or slowing

down of production on the part of workmen

L ff R t h t &


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Under Sec. 2oo

Retrenchment means the termination by theemployer of the service of a workman forany reason whatsoever, otherwise than as apunishment inflicted by way of disciplinary

action.

Lay-off Retrenchment &


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Section 25F: Conditions precedent to

retrenchment of workmenAct prohibits the retrenchment of any workman

employed in continuous service for atleast oneyear under following conditions

- the workman has been given one monthsnotice in writing indicating the reason.

- workman has to be paid compensation of

15days average pay for every completed yearof continuous service.

- notice has been served in the prescribedmanner on the appropriate government by

notification in the official gazette.


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Section 25FFF: Compensation in case oftransfer of undertakings

Where the ownership or management of anundertaking is transferred to a newemployer before such transfer everyworkman is entitled to compensation and

notice as if he had been retrenched

ff h


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Under Sec. 2cc

Closure means permanent closing down of aplace of employment or part thereof.


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Section 25FFA: Notice of intention toclose down an undertaking

Employer who is intending to close down anundertaking should serve 60 days priornotice to his workman.


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1 the industrial disputes act 1947

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