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Provisions for Industrial Disputes

Act 1947
• ‘AWARD’ [Sec 2(b)]- means an interim or final determination of any
industrial dispute or of any question relating thereto by any Labour
Court, Industrial Tribunal or National Tribunal. The ‘award’ is required
to be published by State/Central Government within 30 days.
[section 17]. The award becomes effective 30 days after its
publication. [section 17A].

• ‘CLOSURE’ [section 2(g)]. - means permanent closing down of a place


of employment or part thereof. Thus, closure can be of part of
establishment also. 60 days notice should be given for closure to
Government, if number of persons employed are 50 or more.
• ‘INDUSTRY’ [sec.2(j)] - any business, trade, undertaking, manufacture
or calling of employers and includes any calling, service,
employment, handicraft or industrial occupation or avocation of
workmen.

(i) where there is systematic activity,


(ii) organised by co-operation between employer and employee,
(iii) for the production and/or distribution of goods and services
calculated to satisfy human wants and wishes, it is an industry.
(iv) industry does not include spiritual or religious services or
services geared to celestial bliss; absence of profit motive or
gainful objective is irrelevant.
• ‘WORKMAN’- means any person employed in any industry to do
any manual, unskilled, skilled, technical, operational, clerical or
supervisory work for hire or reward, whether the terms of
employment are express or implied and for the purposes of the
proceedings under this Act, in relation to an industrial dispute,
includes any such person who has been dismissed, discharged, or
retrenched in connection with, or as a consequence of, or whose
dismissal, discharge, or retrenchment has led to that dispute.
• Does not include any person-
– subject to Army Act 1950, Air Force Act 1950, Navy Act 1957;
or
– employee of police service or prison; or
– employed in managerial or administrative capacity.
• ‘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. It also includes:
– allowances that the workman is entitled to;
– value of any house accommodation, supply of light, water, medical or
other amenity or other articles;
– any travelling concessions;
– any commission payable on the promotion of sales or business or both;

Any bonus or pension or gratuity or PF or any fund for the termination of


workmen these are not wages.
• ‘STRIKE’- cessation of work by a body of persons employed in any industry
acting in combination, or a concerted refusal, or a 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.
• Essential requirements for the existence of a strike:
– there must be cessation of work;
– it must be by a body of persons employed in any industry;
– strikers must have been acting in combination;
– strikers must be working in any establishment which can be called
industry under the Act;
– there must be concerted refusal; or
– refusal under common understanding;
– they must stop work for some demands relating to employment, non-
employment, or terms of employment.

Workers go on strike, while ‘lock-out’ is to be declared by employer.


• ‘Lock-out’- means temporary closing or 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. [section 2(l)].

• Essential requirements for lockout:


– temporary closing of place of employment;
– the element of a demand for which the industrial establishment has
been locked out, must be present;
– intention to re0open or take the workers back if they accept the
demands must exist;
– Employer and employee must be engaged in an industrial process
carried on in an institution falling within the meaning of industry as
defined in the Act.
• ’Lay off’- means failure, refusal or inability of employer on account of shortage of coal,
power or raw materials or accumulation of stock or break down of machinery or natural
calamity; to give employment to a workman on muster roll.

Lay off’ means not giving employment within two hours after reporting to work. - - Lay off can be
for half day also. In such case, worker can be asked to come in second half of the shift. [section
2(kkk)].

Essentials are:
– there must be (i) failure, (ii) refusal or (iii) inability of the employer to give employment to a
workman,
– names of the workmen laid off must be on the muster rolls of the industrial establishment
on the date on which they have been laid off,
– the failure, refusal or inability of the employer to give employment must be on account of
the following reasons:
• shortage of coal,
• shortage of power,
• shortage of raw materials,
• accumulation of stocks
• breakdown of machinery;
• natural calamity or for any connected reasons.
• ‘Retrenchment’- means termination by the employer of service of a workman for any
reason, other than as a punishment inflicted by a disciplinary action. ‘Retrenchment’
means discharge of surplus labour or staff by employer. It is not by way of punishment.
The retrenchment should be on basis of ‘last in first out’ basis in respect of each
category, i.e. junior-most employee in the category (where there is excess) should be
retrenched first. [section 25G]. If employer wants to re-employer persons, first
preference should be given to retrenched workmen. [section 25H].
• Essentials are:
– there must be termination of services by the employer of the workmen,
– It must be on the grounds of surplus labour,
– The terminated service must have been capable of being continued,
– It may be for any reason but not by any motive of victimisation or any unfair
labour practice,
– It must be for surplus labour in a continuous industry,
– It must be for reasons such as rationalisation of industry, installation of new labour
saving machinery, economy or any other trade reason,
– The termination of service must not fall within the exclusion clause of the
definition, such as voluntary retirement, retirement on reaching the age of
superannuation termination on the ground of continuous ill-health.

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