The Industrial Disputes Act, 1947

Tags; Labour Laws, Important questions for M.B.A, H.R, Human Resource Management, Labour Legislation University Questions for B.Com (Hons), M.com, Articles on Labour legislation, Interview questions with solutions For Competitive Examinations. The Industrial Disputes Act , 1947 is a principle central legislation which provides  for settlement of industrial Disputes.  The main objective of the Act is to secure industrial peace by preventing and settling industrial disputes through internal works committees or external machinery of conciliation (consisting of Conciliation Officers, Boards of Conciliation  and Courts of inquiry) or compulsory adjudication(consisting of Labour Courts, Industrial Tribunals and National Tribunals) and through Voluntary arbitration. This Act  also protects the service conditions of employees during pendency of Industrial disputes proceedings. It also prohibits employers and workmen from indulging in any unfair trade practices.

Questions; 

• Explain in brief different methods of resolution ofIndustrial disputes as provided under the Industrial Disputes Act, 1947.
• What is the Industrial dispute act of 1947?
• Explain the history and importance of the Industrial Disputes Act, 1947
The Industrial Disputes Act, 1947

Applicability of Act

This Act is applicable to all Industries in the country.

Important Definitions of The Industrial Disputes Act, 1947

 “Industry”

means any business, trade, undertaking, manufacture or calling of the employees and includes any calling, service, employment, handicraft, or industrial occupation or avocation of workmen.

“Industrial Disputes”

 means any dispute or difference between  :

·               Employers and Employers or between

·               Employers and Workmen or between

·               Workmen 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

“Wages”

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

i.              such allowances including Dearness Allowance,

ii.             value of any house accommodation,

iii.            Traveling concession, commission but does not include;

a)    Bonus

b)    Employer’s contribution to EPF/ESI

c)    Gratuity on termination of service

Followings are the Main Provisions of the The Industrial Disputes Act, 1947

Industrial Disputes

Any dispute concerned to an individual workman is not to be considered as an Industrial dispute. However, disputes connected to discharge, dismissal, retrenchment of an individual workman are treated as Industrial dispute.

 Works Committee

In case of any industrial establishment in which one hundred or more workmen are employed or have been employed, the appropriate Government by general or specific order require the employer to constitute a Works Committee.  It is a Joint Committee with equal number of employers and employees representatives for discussion of certain common problems.

Authorities under ID Act

The authorities for settlement and investigation of Industrial Disputes as per the ID Act are as under:

Sl.No	Dispute settlement machineries	Authority
1.	Conciliation Officers – generally the Regional Labour Commissioner of the respective region are appointed as conciliation officers.  The conciliation arrived at is known as ‘ settlement’	Non – judicial.
2.	Conciliation Board – consists  of a Chairman(Independent) and 2/4 members representing all the parties equally	--------do----------
3.	Courts of Inquiry – consists of one independent person or if No. is more than 2 then one of them is appointed as Chairman.  Their decision is known as ‘Award’	Quasi Judicial.
4.	Labour Courts – consist of 1 person who has a)    been judge of High court ,or b)    been District Judge for atleast 3 years, or c)    been a judge in other office for atleast 7 years, or d)    Presided a Labour court under any State Act for 5 years	--------do----------
5.	Industrial Tribunals – consists of one person who has a)    been judge of High court ,or b)   been District Judge for atleast 3 years	--------do----------
6.	National Tribunals – consists of I person who has been a judge of High Court	--------do----------

Following points are to be noted in cases of Industrial Disputes.

(i)            Matters which are to be dealt with by the Labour Courts and Industrial tribunal  are specified in Schedule 2 and Schedule 3 of the ID Act     

Strikes and Lockouts

1. No person employed in a public utility service shall go on strike, in breach of contract-

a)    without giving to the employer notice of strike, as hereinafter provided, within six weeks before striking; or

b)    within fourteen days giving such notice or

c)    before the expiry of the date of strike specified in any such notice as aforesaid or

d)    during pendency of any conciliation proceedings before a conciliation officer and 7 days after conclusion of such proceedings.

2. No employer carrying on any public utility service shall lock-out any of his workmen-

a)    without giving them notice of lockout as hereinafter provided, within six weeks before lockingout or

b)    within fourteen days giving such notice or

c)    before the expiry of the date of lock-out specified in any such notice as aforesaid or

d)    during pendency of any conciliation proceedings before a conciliation officer and 7 days after conclusion of such proceedings.

General prohibition of strikes and lock-outs

No workman who is employed in any establishment shall go on strike in breach of contract and no employer of any such workman shall declare a lock-out

a)    during the pendency of conciliation proceedings before a Board and seven days after the conclusion such proceedings

b)    during the pendency of proceedings before a Labour Court, Tribunal or National Tribunal and two months after the conclusion such proceedings

c)    during the pendency of arbitration proceedings before an arbitrator and two months after the conclusion such proceedings

d)    during any period in which a settlement or award is in operation, in respect of any of the matters covered by the settlement or award

Layoff, Retrenchment and closure

 These are the actions taken by an employer. The general conditions governing these are as under:

  

SN	Description	Layoff	Retrenchment	Closure
1	Meaning	Failure, refusal or inability of an employer on account of shortage of coal, power, raw materials , or natural calamity to give employment to a workman whose name is borne on muster roll	Termination of employment of workman otherwise than  a) Disciplinary action, b) Voluntary retirement, c)Superannuation d) Non renewal of contract and e) continued ill health of workman	Permanent closing down of a place of employment or part thereof
2	Prior Permission from government	Not necessary when no. of workmen less than 50. In other cases prior permission of Govt. necessary	Not necessary when no. of workmen is less than 50. In other cases prior permission of Govt. necessary	Necessary in all cases
3	Notice to workmen	Copy of permission letter to govt. should be given to workmen	30 days when workmen is less than 50. In other cases 3 month	60 days when workmen is less than 50. In other cases 90 days
4	Compensation	50% of Basic + DA to workman who is on rolls for atleast a year	15 days wages for each completed year	15 days wages for each completed year
5	Other points	1.    Workman will get compensation if he presents himself at the establishment at the appointed day. 2.    Workman not entitled to compensation if he refuses employment within radius of 5 miles from establishment	1.    Last in first out should be followed for retrenchment 2.    Retrenched workman should be given preference for reemployment	1.    In case of financial difficulties total compensation should not exceed 3 months wages. 2.    Closed establishment may be restarted in exceptional circumstances

Penalties

Offence	Punishment
Penalty for layoff and retrenchment without permission	Imprisonment which may extend upto 1 month or Fine which may extend upto Rs 1000/- or both
Penalty for closure without proper notice, compensation and permission	Imprisonment which may extend upto 1 month or Fine which may extend upto Rs 1000/- or both
Penalty or unfair labour practices	Imprisonment which may extend upto 1 month or Fine which may extend upto Rs 1000/- or both
Penalty for illegal strike / lock-out	Imprisonment which may extend upto 1 month or Fine which may extend upto Rs 50/- or both
Penalty for breach of settlement/award	Imprisonment which may extend upto 6 month or with Fine or both