INDUSTRIAL DISPUTES ACT, 1947

Objectives
After completing this unit, you will be able to:

Evaluate the nature and functions of the industrial disputes.

Analyse the role of the industry in solving disputes.

Identify the applications of industrial disputes act.

Structure
16.1 Introduction
16.2 Definitions of Industrial Dispute
16.3 Closure of an Industry
16.4 Settlement of Disputes
16.5 Conciliation Proceedings
16.6 Duties of the Works Committee
16.7 National Tribunal
16.8 Summary
16.9 Keywords
16.10 Self-assessment Questions

16.1 INTRODUCTION
The Industrial Disputes Act has been an endeavor on the part of the Government to
regulate industrial relations in India and it is designed to ensure industrial peace and
harmony. It lays down authorities and procedure for investigation and settlement of
industrial disputes by negotiation, conciliation, adjudication instead of trial of
strength through strikes and lockouts as part of objective of preventing work
stoppage.
Short title, extent and commencement
1. This act may be called the Industrial Disputes act, 1947,
2. It extends to the whole of India,
3. It shall come into force on the first day of April194 7.
16.2 DEFINITIONS OF INDUSTRIAL DISPUTE
In this act, unless there is anything repugnant in the subject of context.
1. 'Industry' means any systematic activity carried on by co-operation between any
employer and his workmen (whether such workmen are employed by such employer
directly or by or through any agency, including a contractor for the production
supply or distribution of goods or services with a view to satisfy human wants or
whishes (not being wants or wishes whkh are merely spiritual or religious in nature).
2. "Industrial Dispute" 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 to with the conditions of Labour of any person;
Industrial establishment' or 'undertaking' means an establishment or undertaking in
which any industry is carried on;
'Lay-off means the failure, refusal Orin ability of an employer on account of shortage
of coal, power or raw materials or the accumulation of stocks or the break-down of
machinery of natural calamity to give employment to a workman whose name is born
on the muster-rolls of his industrial establishment acid who has not been retrenched,
he is paid lay-off composition.
'Lock -out' means the closing of work place of employment or the suspension of
work, or the refusal by an employer to continue to employ any number of person
employed by him.
Activity A:
Elaborate on lock out with two examples.
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16.3 CLOSURE OF AN INDUSTRY
1. Means the permanent closing down of a place of employment or part-thereof
2. It means working totally comes to a stand still
3. It is unemployment of all workmen
4. An employer intending to close-establishment to give 90 days notice to the
appropriate government.
(i) Notice on sufficient grounds
(ii) If no notice is given and if permission is refused the closure will be illegal.
5. Workmen means any person employed in industry to do any skilled, unskilled,
manual, supervisory, technical or clerical work for reward or wages but does not
include such persons.
I. Employment in police service
II. Army, navy, air force act
III. Who is employed mainly in a managerial or administrative capacity.
6. Individual dispute - means if any disputes or difference between employers. It
shall be individual disputes,
7. Industrial disputes - means any dispute of difference between employers and
workmen or between employers and employers and between workmen and workmen
which is connected with the employment or the terms of employment or with the
condition of labour.
A dispute connected with dismissal discharge retrenchment or termination.
It shall be an Industrial dispute,
a) If a group of interest is involved
b) There must be collective will of workmen to fight against employer for their
demands..
c) If it is taken by the union. This will be industrial dispute unless it is sponsored by a
Trade Union or by a substantial number of workers.
d) The industrial dispute cannot be industrial dispute unless it is sponsored by a
Trade Union or by a substantial number of workers.

Activity B:
Explain in brief, what is the contribution of the Trade Union in resolving the
industrial dispute? Give two examples.
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16.4 SETTLEMENT OF DISPUTES
Settlement means a settlement arrived at in course of conciliation proceeding
peacefully amicable before the conciliation officer or before the conciliation
machinery.
It is a written agreement between employer and workmen signed by the parties,
employer and workmen before the conciliation officer mentioning there in the date of
its implementation, the copy of which is sent to the appropriate government. It must
be fair and amicable.
Award - means an interim or final determination of any Industrial Tribunal or
national tribunal and includes Arbitration award.
The date of its operation as fixed under this act is one year. This can be terminated by
giving two months notice given by one of the parties intimating its intention to
terminate the award.
(A) Public utility service - means any transport services used for passengers and
goods, telegraph, telephone, supply of power light, air transport, major port, post,
docks, safety department any system of public conservancy or sanitation.
(B) Strike - means cessation of work by a body of person employed in any industry
acting in combination or refusal to work or abstain from working under a common
understanding.
(C) Retrenchment - means the termination of services of a workman by the employer
for any reason.
a. Voluntary retirement or retirement on reaching on the age of superannuation and
termination on the ground of continued ill-health are not considered as
retrenchment.
b. It means discharge of surplus labour for any reason by the employer.
c. Gets retrenchment-allowance as per provisions under this act.
d. Notice to be sent and to put on notice board.

e. It is the termination of service of workmen due to inability of the employer to keep

the establishment fully working for an indefinite period due to shortage of work or
surplus in workmen. i) If a workman is retrenched and if he has completed one year of continuous service
- he is entitle for retrenchment compensation 15 days average pay for every year of
service or any part in excess of 6 months.
ii) One month's notice pay
iii) In case of Retrenchment the employer has to make the following compliance:
A notice to be served on the appropriate government.
The last person employed in that category should be retrenched first.
Preference to be given to the retrenched person for the re-employment
A copy of notice should be displayed on the notice-board.
It should be published in newspaper.
It should be sent to the workmen by registered post.
Activity C:
List some of the Public Utility Services.
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16.5 CONCILIATION PROCEEDINGS
Conciliation - Proceedings means including the parties to come to or to arrive at
amicable, peaceful, fair settlement on the Industrial disputes.
This provides the Machinery and procedure for investigation and settlement of
Industrial disputes.
Authorities under this act
Section 3: Works Committee
For promoting dialogue between the employer and the workmen and for securing
and preserving amity, the act provides that every industrial establishment employing
100 or more workers is to establish a work committee, comprising equal
representatives of management and workmen. The main function of this committee
is to endeavor to compose any difference of opinion in matters of common interest

and thereby promote cordial relations between employers and workmen. The
representatives of workmen are to be chosen from among the workers engaged in the
establishment in the manner specified under the act and in consultation with their
trade union if any registered under the Trade Union Act, 1926.
List of the items to be discussed in the works committee, namely:
(a) Condition of work such as ventilation lighting temperature and sanitation
(b)Amenities such as drinking water, canteens, lunch rooms, crches, medical
equipment.
(c) Adjustment of festival and national holidays.
(d) Administration of welfare funds, educational and recreational activities such as
libraries, reading rooms, cinema shows, sports, games, picnic, community, welfare
and celebrations, promotions of thrift and savings.
It will not be dealt in the works committee
1. Wages and allowances Management policies Rationalisation Matters connected
with the fixation or work load
Activity D:
Enumerate the activities of the Work Committee.
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16.6 DUTIES OF THE WORKS COMMITTEE
It shall be the duty of the works committee to promote measures for securing and
preserving amity and good relations between the employer and workmen and to that
end to comment upon matters of their common interest or concern and endeavor to
compose any material difference of opinion in respect of such matters.
Section 4: Conciliation officer
The appropriate Govt. may by notification in the official gazette appoint such number
of persons as it thinks fit to be conciliation officers charged with the duty of
mediating in and promoting the settlement of Industrial disputes.
Section 5: Board of Conciliation
(1) The appropriate government may as occasion arises by notification in the official
gazette constitute a board of conciliation for promoting the settlement of an
industrial dispute.

(2) A board shall consist of a chairman and two or four other members as the
appropriate government thinks fit.
(3) The Chairman shall be an independent person and the other members shall be
persons appointed in equal number to represent the parties to the dispute and any
person appointed to represent a party shall be appointed on the recommendation of
that party.
Section 6: Court of inquiry
1. The appropriate government may as occasion arises by notification in the official
gazette constitute a court of inquiry into any matter appearing to be connected with
or relevant to an industrial dispute.
2. A court may consist of one independent person or such number of independent
persons as the appropriate government may think fit and where a court consists of
two or more members one of them shall be appointed as the chairman.
Section 7: Labour Court
1. The appropriate government may by notification in the official gazette constitute
one more Industrial Tribunals for the adjudication of Industrial disputes in the
second scheme or the Third schedule.
2. A person shall not be qualified for appointment as the presiding officer of the
tribunal unless
A. he is or has been a judge of high court or
B. he has for a period not less than three years been a District judge.
3. The appropriate Government, if it is so think fit appoint two persons as assessors
to advise the tribunal in proceeding before it.
Activity E:
List out the role of the Tribunal in solving industrial disputes.
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16.7 NATIONAL TRIBUNAL
The central government 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 question 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.

A National Tribunal shall consist of one person only to be appointed by the

Central government.

A person shall not be qualified for appointment as the presiding officer of

National Tribunal (unless he is or have been a judge of a high court).

The Central government may, if it is so thinks fit, appoint two persons as

assessors to advise the national. Tribunal in the proceeding before it.

Section 34: Notice of change in Employment Conditions

If the employer wants to make a change in respect of any matter specified below he
has to give 21 days notice to the trade union then by affixing th~ same on the notice
board.
1. Wage-period and the mode of payment.
2. Contribution paid or payable by the employer to any provident fund or pension
fund or for the benefit of the workmen under any law for the time being in force.
3. Compensatory and other allowances
4. Hours of work and rest intervals
5. Leave with wages and holidays
6. Starting, alteration or discontinuance of shift working otherwise than in
accordance with standing orders.
7. Classification by grades
8. Withdrawal of any customary concession or privilege or change in usage.
9. Introduction of new rules of discipline or alteration of existing rules except in so
far as they are provided in the standing orders.
10. Rationalisation, standardisation or Improvement of plant or technique which is
likely to lead to retrenchment of workmen.
11. Any increase or reduction (other than casual) in the number of persons employed
or to be employed in any occupation or process or department of shift.
Sections 22, 23, 24: Prohibition of Strike, lock-outs
In a public utility service, strikes and lock-outs are prohibited under the following
circumstances namely
A. without giving notice to the other party within six weeks before striking or locking
out.

B. within 14 days of giving notice

C. before the expiry of the date if strike or lock out specified in the notice and
D. during the pendency of any conciliation and seven days after the conclusion of
such proceedings.
Activity F:
List some of the activities of the National Tribunal.
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16.8 SUMMARY
The Industrial Disputes Act constituted to resolve the Industrial Disputes and so far
this act has contributed immensely towards the said objective. Most of the Indian
Industries have been successfully applying this particular act to achieve conciliation
between industrial unions and the management to arrive at the mutually benefited
solutions by avoiding the Industrial Disputes for smooth conduct of working
atmosphere at present. Most critical disputes pertaining to industrial conflicts have
been fixed with considerably suitable and acceptable solutions in between working
force and the management of the Indian Industries.
16.9 KEY WORDS
Factory: A building or set of buildings where large amounts of goods are made
using machines.
Manufacturing: To produce goods in large numbers, usually in a factory using
machines.
Process: A series of actions that you take in order to achieve a result.
Accumulation: To gradually increase in number or amount.
Employer: A person or company that pays people to work for them.
16.10 SELF -ASSESSMENT QUESTIONS
Q 1. Define the term 'Industry' in the light of the judgment of the Supreme Court in
case of Bangalore Water Supply and Severage Board vs. Rajappa and others
Q2. Define Layoff and Retrenchment and highlight the distinction between then.
Q3. Define an 'Industrial Dispute'. Examine the circun:.stance as to when an
individual dispute becomes an industrial dispute.

Q4. Critically examine the various authorities that have been constituted under the
Industrial Dispute Act, 1947
Q5. Define 'Strikes' and 'Lock Outs'. Explain as to when the strikes and lock outs
become illegal under the Industrial Dispute Act, 1947.