BYMUTHUMANIKANDAN K________MA.HRM-DG VISHNAV COLLEGE

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INDUSTRIAL DISPUTES ACT, 1947

OBJECTIVES

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1. Industrial Disputes

2. Strikes

3. Industry

4. Retrenchment

5. Lock –out

6. Lay Off

Questions about Industrial Disputes 1947

Bibliography

INDUSTRIAL DISPUTES

“Industrial dispute” is defined by Section 2(K) of the

industrial disputes Act, 1947 as, “any dispute or

difference between employers and employers, or

between employers and workmen, or between workman

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.’’

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STRIKES

Industrial Disputes Act,1947,deals with this type

separately in section 2(Q) and defines it as “strike means

a cessation of work by a body of persons employed in

any industry acting in combination, or a concerted

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.”

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INDUSTRY

Accordingly, section 2(j), an activity would become an industry if

(a) it is systematic,

(b) it involves co-operation between the employees and the employer,

(c) it results in the production and/or distribution of goods or services, and

(d) is carried on as trade or business, regardless of whether it is trade or

business, for profit or not.

If these tests are satisfied the term industry would include educational institutions,

university, hospitals, societies, charitable institutions, a firm of lawyers and

chartered accountants, municipality, etc.5

RETRENCHMENT

According to The term "retrenchment" defines under the

section 2(00) may be analyzed as:

(1) Retrenchment means the termination by the employer

of the services of a workman.

(2) The termination may be for any reason what so ever.

(3) But the termination should not be as a measure. of

punishment byway of disciplinary action.

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LOCK -OUT

In section 2(I) Lock out Means the 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.

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LAY OFF

In section 2(kk) Lay Off Means putting aside workmen temporarily. The duration of lay off

should not be for a period longer than the period of emergency. The employer-employee

relationship does not come to an end during the period of lay-off but is merely suspended

during the period of emergency.

Any such refusal or failure to employ a workman may be on account of:

(i) shortage of coal, power or raw materials or

(ii) the accumulation of stock; or

(iii) the breakdown of machinery; or

(iv) natural calamity; or

(v) any other connected reasons.

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APPROPRIATE GOVERNMENT

In section 2 ( a) The Central Government as well as the State Government

are vested with various powers and duties in relation to matters dealt with

in this Act. In relation to some industrial disputes the Central Government

and in relation to some others, the State Government concerned are the

appropriate Government to deal with such disputes.

Under sub-section [(i) (a)] and [(i)(b)] of the Act,

Companies/Corporations/Trusts/Boards/ Authorities, etc. established under

the Act of Parliament; the Central Government is the Appropriate

Authority. 9

Q :- STATE AND EXPLAIN THE VARIOUS AUTHORITIES APPOINTED UNDER THE INDUSTRY

DISPUTES ACT TO SOLVE INDUSTRIAL DISPUTES

OR

Q:- WHAT IS THE MACHINERY SETUP IN INDUSTRIAL DISPUTES ACT 1947 FOR SETTLEMENT OF

DISPUTES?

The authorities that make use of conciliation on the sole method of

settlement of disputes are:

(1) Works Committee

(2) Conciliation Officer

(3) Board of Conciliation

The adjudicating authorities that decide any dispute under the Act. are:

(1) Court of Inquiry

(2) The Labour Court

(3) Industrial Tribunal;

(4) National Tribunal, and10

Sec. 10-A of the Act. makes provision for voluntary reference ofdisputes to arbitration. Apart from the above, provision has also beenmade for constitution of Court of Inquiry, whose main function isinquire into any matter appearing to be connected with or relevant to anindustrial dispute.

1. Work committee (Sec.3)

The works committee is considered to be powerful socialinstitution only to secure cooperation between workers andemployers, but to make the will of the employees effective on themanagement. According to sec.3 of the Industrial Disputes Act, in thecase of an industrial establishment in which 100 or more workmenare employed or have been employed on any day in the preceding 12months, the appropriate Government may, by general or specialorder, require the employer to constitute a Works committeeconsisting of representatives of employers and workmen engaged inthe establishment. The number of representatives of workmen onWorks Committee shall be not being less than that of therepresentatives of the employers.

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2. Conciliation Officers (Sec.4)

The appropriate government may appoint conciliation officers charged

with the duty of mediating in and promoting the settlement of, industrial

disputes. A conciliation officer may be appointed for a specified area or

for a specified industry in a specified area, and his appointment may be

permanent or temporary.

3. Board of Conciliation (Sec.5)

In a similar manner, a board of conciliation may also be constituted to

promote the settlement of industrial disputes. A board shall consist of a

chairman and two or four other members, as the appropriate government

thinks fit. The chairman shall be an independent person and the other

member shall be person appointed in equal numbers to represent the

parties to the dispute on the recommendation of the parties concerned. If

any party fails to make a recommendation within the prescribed time, the

appropriate government shall appoint such persons as it thinks fit to

represent that party.12

4. Courts of Inquiry (Sec.6)

The appropriate government may constitute a court of inquiry consisting of

one or more independent persons to enquire into any matter connected with or

relevant to an industrial disputes. Where a court consists of two or more

members, one of them shall be appointed as chairman.

5. Labour courts (sec-7)

The appropriate government may constitute one or more labour courts to

adjudicate industrial disputes relating to any of the following matters

1. The propriety or legality of an order passed by an employer under the standing

orders;

2. The application and interpretation of standing orders;

3. Discharge or dismissal of workmen, including retirement of, or grant of relief

to, workmen wrongfully dismissed;

4. Withdrawal of any customary concession or privilege;

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5. Illegality or any customary concession or privilege;

6. All matters other than those specified in the third schedule.

A labour court shall consist of one person only with necessary judicialqualifications, and will be appointed by the appropriate government.

6. Industrial Tribunals (sec.7A)

The appropriate Government may by notification in the Official Gazette,constitute one or more industrial tribunals for the adjudication ofindustrial dispute s relating to any matters specified above as in the caseof Labour Court, or the following

matters, namely

1.Wages including the period and mode of payment

2.Compensatory and other allowances;

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 with standing orders;

7. Classification by grades;14

8. Rules of discipline;

9. Rationalization;

10.Retrenchment of workmen and closure of establishment; and

11.Any other matter that may be prescribed.

7. National tribunals ( sec. 7B)

The Central Government may, by notification in the Official Gazette,

constitute one or more National Industrial Tribunals for the adjudication

of industrial disputes which, in the opinion of the Central Government

involve questions of national importance or are of such a nature that

industrial establishments situated in more than one State are likely to be

interested in, or affected by, such disputes.

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A National Tribunal shall consist of one person only to be

appointed by the Central Government. In order to be qualified as

a Presiding Officer of a National Tribunal, a person must be or

must have been a Judge of a High Court, or must have held the

office of the Chairman or any other member of the Labour

Appellate Tribunal for at least 2 years. The Central Government

may appoint two assessors to advise the National Tribunal, in

proceeding before it. .

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Q: EXPLAIN PROVISION OF ILLEGAL STRIKES AND ILLEGAL

LOCKOUT AS STATED IN INDUSTRIAL DISPUTES ACT 1947.

Sec. 24 of the Act provides that a strike or a lockout shall be illegal if it is:

(a) commenced or declared in contravention of Sec. 22 or 23, and

(b) continued in contravention of the prohibitory order made by appropriate Government after the dispute has been referred under Sec. 10(3) or sub-section 10A(4-A).

Prohibition of financial aid to illegal strikes and lockouts (Sec. 25)

This section of the Act prohibits financial aid to illegal. strikes and lockouts.

This section has the following ingredients: .

(1) spending or applying money:

(2) money spent or applied in direct furtherance or support of an illegal strike,

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Punishments (Sec. 28)

For any violation of provisions of Sec. 25, punishment is imposed by Sec.

28 of the Act. According to the provision, even a person who is not a

workmen can be penalized violating the provisions of Sec. 25. The

effect of Sections 25 and 28 is the prosecution to support a conviction

for breach of Sec.25 must prove that:

(i) The strike or lock-out in question was illegal

(ii) The accused had knowledge that

(a) the strike or lockout was iIIegal and

(b) the money spent or applied by him was in direct furtherance

or support of a strike or lockout.

(iii) That the money was actually spent or applied by the accused.

However, assistance to strikers in any other from, for example,

supplying clothes, food, etc. is not prohibited under Sec. 25 of the Act. 18

Q:-BRIEFLY EXPLAIN STRIKE AND LOCKOUT IN PUBLIC

UTILITY SERVICES.

Sec.22 of the Industrial Disputes Act provides that:

(1) No person employed in a public utility service go on strike in breach

of contract:

(a) Without giving notice of strike to the employer within six weeks before

striking, or

(b) Within 14 days of giving notice, or

(c) Before the expiry of the date of strike specified in any such notice as

aforesaid, or

(d) During the pendency of any conciliation proceedings and 7 days after

the conclusion of such proceedings.

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(2) No employer on any public utility service shall lockout any of his

workmen

(a) Without giving them notice of lock-out as herein after provided within six

weeks before locking out; or

(b) Within 14 days of giving such notice; or

(c) Before the expiry of the date of lockout specified in any such notice as

aforesaid; or

(d) During the pendency of any conciliation proceeding before Conciliation

Officer and seven days after the conclusion of such proceedings.

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DIFFERENCE BETWEEN LOCK-OUT AND

RETRENCHMENT

(1)Temporary or permanent: Lockout is temporary measure, while

retrenchment is permanent.

(2) Relationship: In lockout the relationship of employer and

employee is only suspended; it does not come to an end. In

retrenchment such a relationship is severed at the instance of the

employer.

(3) Motive: Lockout is with a motive to coerce the workmen; the

intention of retrenchment is to dispense with surplus labour.

(4) Trade dispute: Lockout is due to an industrial dispute, whereas in

case of retrenchment, there is no such dispute 21

DIFFERENCE BETWEEN STRIKE AND LOCK-OUT

Strike is the ‘act of quitting work done by mutual

understanding by a body of workmen as a means of

enforcing compliance with demands made on their

employer, a stopping of work by workmen in order to

obtain or resist a change in conditions of employment’.

Lock-out is temporary suspension by employer to give

employment to the workmen, unless the workmen accept

the demands of the employer.

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BIBLIOGRAPHY

Industrial & labour laws

- Dr. Sanjeev kumar

Industrial jurisprudence and labour legislation

- A.M.Sarma

Legal systems in business

- P. Saravanavel

- S. Sumathi

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