industrial disputes act 1947 (e1-e2)

For internal circulation of BSNL only

E2-E3

FINANCE

INDUSTRIAL DISPUTES ACT 1947


Introduction

Prior to the year 1947, Industrial disputes were being

settled under the provisions of the „Trade Disputes Act -

1929‟. Experience of the working of the 1929 Act revealed

various defects which needed to be overcome by a fresh

legislations. In result the Industrial Disputes Act -1947

came into force on first day of April 1947.

The Object of the Industrial Disputes Act-1947 is to protect

the workmen against victimization by the employer and to

ensure termination of proceeding in connection with the

industrial disputes in a peaceful manner.


OBJECT

• To settle the disputes between the Employer and the

Employee.

• To settle the disputes between the employer and employer

• To settle the disputes between the employee &employee


PROCESS FOR ADJUDICATION OF

DISPUTE

• This is done after the Conciliation officer fails to make

the parties to come to an agreement and sends the

failure report to the appropriate Government.

• The appropriate Government then applies its mind and

refers the dispute for adjudication.

• The labor court/Tribunal court will adjudicate an

industrial dispute only on a reference by the appropriate

Government.


INDUSTRIAL DISPUTE(SEC.2(kkk)

AS per Section-2 KKK, Industrial Dispute Means a dispute or

difference between:

• Employers and Employees.

• Employers and workmen and

• Workmen and workmen

Dispute Connected with

1. The employment.

2. The conditions of labour of any person

3. Retrenchment

4. Termination of service.

5. Wage revision.

6. Demands for the benefit of workmen.

7. Statutory entitlements etc.


RETRENCHMENT

“Retrenchment means the termination of the

services of a workman by the employer for

any reason what so ever”.


CONDITIONS TO BE COMPLIED WITH

BEFORE RETRENCHMENT

• The retrenched workman shall be given one month

notice or one month pay instead of such notice. Plus(+)

• Compensation @ of 15 days average pay for each

completed year of service –to be offered either before

the actual date of retrenchment or simultaneously.


STRIKE

Means

• Stoppage of work by a body of persons employed in the

industry acting in combination or

• A united refusal under a common understanding of any

number of persons to continue to work or accept

employment.


STRIKE (Contd..)

• May be

• Some workers only or

• In one department

• Or some departments totally.

• It should be both lawful and justified.


CHOICES FOR THE EMPLOYER IN CASE

OF STRIKE

• He can run the business or

• Declare lock out

• The option for lock out to be considered if the strike is

likely to :

(a) Apprehension of danger to the persons or

(b) Loss of property or

(c) Likely to endanger the peace and tranquility.


PROHIBITION OF STRIKES & LOCKOUTS

SEC 22, 23,24,26 AND 10(3)

• In case of industries notified as Public utility services, no

strike or lock out can be resorted to unless a notice of 6

weeks in the prescribed form is given to the Conciliation

officer.

• Such strike or lockout cannot take place with in 14 days

of giving such notice or before the date specified in the

notice.

• If the above provisions are contravened either by the

employer or the union, the same shall be treated as

illegal and the party concerned can be prosecuted.


CHANGE IN SERVCIE CONDITIONS

(SECTION 9-A)

• For effecting any change in the service conditions of any

workman, the employer shall give :

• 21 days of notice in the prescribed form to the

workman/employee/union.

• No such change can be effected within 21 days.


ADJUDICATION LABOR COURTS

PROCEDURE, SEC.11

• Labor court/Industrial tribunal/national tribunal can summon

and give an opportunity to the Employer and the workman to :

1. Submit their statements on the issues involved.

2. Examine witnesses,

3. Receive documents relied upon

4. Hears both the parties and

5. Passes its award

• Award becomes enforceable one month after its

publication in the official gazette.

• Will be in force for one year. Continuing obligations will

continue even after one year.


SETTLEMENTS

There are two type of settlements, they are

01. Bilateral settlement

• It Also called 18(1) settlements.

• Binding on the union and its members entering into the

settlement only.

• Not binding on who are not parties to the settlement.

• Not binding on workmen who join the establishment after

the settlement.


TRIPARTITE SETTLEMENTS

02. Tripartite Settlement:

• Also called 12(3) settlements.

• Entered through conciliation

• Binding not only on the parties to the same but also

others who are not parties.

• Also binding on workmen employed subsequent to the

settlement.

• It does not matter if other unions do not join such

settlements.

• Settlements to be entered with the recognized union.


TERMINATION OF A SETTLEMENT

• Continues to be binding even after the expiry of the

period of settlement unless replaced by another

settlement.

• Cannot be terminated before the expiry of the period.

• Can thereafter be terminated by giving 2 months notice.


UNIONS RECOGNITION

• No provision exists in ID Act 1947 or Trade union Act

1926 to grant recognition.

• Recognition means identifying the collective bargaining

Agent as a representative union.

• Is for the purposes of negotiations and to enter into

settlements.

• No union cannot therefore claim for grant of recognition.


UNIONS RECOGNITION (Contd..)

• Where management agrees to grant recognition, all the

unions have into enter into agreements to abide by the code

of discipline.

• After the Registrar of trade unions holds elections.

• The union which secures majority is recommended by the

Commissioner of Labor to the Management to the

recognition.

• Based on such recommendation, the recognition is granted.

• Will be in force for 2 years from the date and continues to be

in force till elections for recognitions are held.


SOME UNFAIR LABOUR PRACTICES

• ON THE PART OF EMPLOYERS

1. Threatening of workmen with discharge or dismissal, if

they join a trade union.

2. Threatening a lock out or closure, if a trade union is

organized.

3. Granting of wage increase to workmen during a trade

union organization.

4. An employer taking active interest in organizing a trade

union of his workmen

5. Employer showing partiality to one of several trade

unions.


UNFAIR LABOUR PRACTICES (contd..)

ON THE PART OF EMPLOYERS:

6.Establishment of employee sponsored trade unions.

7.Discharging or punishing a workman because he urged

other workmen to join a trade union.

8.Discharging or dismissing a workman for taking part in a

strike which is not illegal.

9.Changing seniority of workmen because of trade union

activity.

10.Refusing to promote on account of trade union activities.



ON THE PART OF EMPLOYERS:

11.Giving unmerited promotions to certain workmen.

12.Discharging office bearers or active members on account

of their trade union activities.

13.To recruit workmen during a strike which is not an illegal

strike.

14.Failure to implement award, settlement or agreement.

15.To indulge in acts of force and violence.



• ON THE PART OF WORKMEN AND TRADE UNIONS:

1.To advice/instigate/support an illegal strike.

2.To cause fear in workmen to join or refrain from joining a

trade union.

3.Picketing in a manner that non-striking workmen are

physically debarred from entering into workplaces.

4.To hold out threats, of intimidation to non-striking

workmen or managerial staff.

5.To stage demonstrations at the residence of the

employers or the managerial staff members.


UNFAIR LABOUR PRACTICES

6.To incite or indulge in willful damage to employer‟s property

connected with the industry.

7.To stage “go slow‟, „Gherao‟ on the working premises.

• Employers

• Workers

• Trade unions

Are prohibited to commit any unfair Labor

practice. If they committed they will be

• punishable with

• Imprisonment up to 6 months or

• Fine or

• Both

industrial disputes act 1947 (e1-e2)

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