Industrial Disputes Act -1947

The conflict between the industrialists (employers) and labourers (employees) is inherent in a democratic and an industrial society. Economic progress of a country largely gets obstructed by the industrial conflicts; therefore industrial peace is desired. It is a reality that no rule, regulation or legislation can eliminate the industrial conflicts permanently; however a quest for industrial harmony is indispensable when a country plans to make industrial and economic progress. Industrial Disputes Act was enacted to provide a machinery and forum for the settlement of conflicting interests without disturbing the peace and harmony in industry and assuring undisturbed industrial growth which is required for the industrial development of the country. The Act aims to ensure social justice to both employers and employees and accelerates industrial progress by bringing about harmony and cordial relationship between parties. Machinery under the Act Industrial Disputes Act, 1947 has provided for an elaborate machinery for the settlement of disputes: 1) 2) 3) 4) 5) 6) 7) 8) 9) Works Committee Conciliation Officer Board of Conciliation Courts of Enquiry Labour Courts Tribunals National Tribunal Grievance Settlement Authority Voluntary Arbitration

OBJECT: To make provisions for the investigation and to prevent and resolve industrial disputes; and to secure good relations between workers and management, for the common good. The Act is a benign measure which seeks to pre-empt industrial tensions, provide the mechanics of disputes resolution and assurance of industrial justice to create a climate of goodwill amongst the parties.

Industry Sec. 2(j) Industry means any business, trade, undertaking, manufacture or calling of employers and includes any calling, service, employment, handicraft or industrial occupation or a vocation of workmen. The term industry has been defined in most wide terms and anything and everything seems to have been included. In fact the term is described as it cannot be defined strictly. Here the definition of workman as given u/s 2(s) also needs to be understood. Workman means any person (including an apprentice) employed in any industry.. Therefore if workman is absent, the workplace cannot be termed as industry within the meaning of the definition u/s. 2(j). It is to be noted that the activities like agricultural, domestic work, religious rituals, charitable activities, sovereign functions etc. do not fall under the term industry. Several courts and even the Supreme Court, on several occasions gave rulings including all activities within the ambit of Sec. 2(j). In Bangalore Water Supply Board v. A. Rajappa, (1978), the seven-judge bench was constituted to review all the earlier cases and explained the meaning of the term Industry. SC has given a wide coverage to industry and activities like education, charitable institutions (excluding strictly the spiritual ones), recreational and research institutions, hospitals etc. come within the nexus of industry if they satisfy the requisite test. From the ruling given in this case, generally , the following points should be taken into consideration while construing the term industry: a) b) c) d) e) Cooperation of employers and the employees Object is the satisfaction of material needs It must be an organised or well arranged activity must not be casual nor for oneself nor for pleasure of oneself Absence of profit motive is irrelevant.

All the judges of the SC in the case of Bangalore Water Supply Board expressed the view that the matter should be clarified by the legislature. Hence, the Amendment Act of 1982 has redefined the term. (It has not been brought into effect till date).

Industrial Dispute Sec. 2(k) Any dispute or difference between : i. Employers and employers ii. Employers and workmen iii. Workmen and workmen Connected with i. ii. The employment and non-employment or the terms of employment or Conditions of labour, of any person.

The SC interpreted the expression any person in Dimakuchi Tea Estate (1958) case and observed that the expression must be read subject to such limitations and qualifications as arise from the context; (a) the dispute must be a real dispute between the parties to the dispute capable of being settled or adjudicated by one party giving necessary relief to the other, and (b) the person regarding whom the dispute is raised must be one in whose employment, non-employment, terms of employment or conditions of labour, the parties to the dispute have a direct or substantial interest. Workman Sec. 2(s) Any person (including an apprentice) employed in an industry, to do any manual, unskilled, skilled technical, operational, clerical or supervisory work, for hire or reward. His terms of employment may be express or implied and for the purpose of this Act includes any such person: (a) who has been dismissed, discharged or retrenched in connection with or as a consequence of an industrial dispute or (b) whose dismissal or retrenchment has led to the dispute. Persons who are not workmen: Who is subject to the Air Force Act, the Army Act or the Navy Act Who is employed in police service or employee of a prison Employed mainly in a managerial or administrative capacity Who is employed in a supervisory capacity and drawing wages exceeding 1,600/per month. (Rs. 10,000/- w.e.f. 15/9/2010)

The definition of workman presupposes the relationship of master and servant. Persons mainly employed in managerial or administrative capacity have been excluded from the definition of workman. Strike Sec. 2(q) Strike means (a) a cessation of work by a body of persons employed in any industry acting in combination, or (b) a concerted refusal or a refusal under a common understanding of any number of persons who are or who have been so employed to continue to work or to accept employment. Mere cessation of work or absence of a workman from work does not amount to taking part in a strike. The absence should be the result of some concerted action or understanding between workmen not to continue to work. In the constant tussle of employees and employer, strike is a recognised weapon of workmen to be resorted to by them to bring pressure upon the employer to concede to their demands during an industrial dispute and asserting their bargaining power upon the unwilling employer. Cessation or stoppage of work is the most significant characteristic of the concept of strike. Duration of time of strike has nothing to do with the meaning of strike. Refusal to work overtime when overtime is habitually worked in an industry also amounts to strike. Lock-out Sec. 2(l) Lock-out means the temporary closing of 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. The essentials of lock-out are: a) Temporary closing of place of employment, or suspension or withholding of work by the employer; b) There is an element of demands for which the place is locked-out; c) There is an intention to re-employ the workers if they accept the demands. Lock-out can be described as the opposite to strike. Just as a strike is a weapon available to employees, a lock-out is a weapon available to the employer to persuade, by a coercive process, the employees to ensure that his demands are accepted.

Mere refusal to give employment does not amount to lock-out unless it is done with a view to persuade the employees to see that the employers point of view and his demands are accepted. Retrenchment of some workmen, preventing employees from coming to place of work after their termination, refusal by an employer to allow late-comers on a day to work on that day do not amount to lock-out. Lay-off Sec. 2(kkk) Lay-off means the failure, refusal or inability of an employer to give employment to a workman (a) whose name is borne on the muster-rolls of his industrial establishment, and (b) who has not been retrenched. The failure, refusal or inability to give employment may be due to: I. II. III. IV. Shortage of coal, power or raw-material, or The accumulation of stocks, or The breakdown of machinery, or Natural calamity or for any other connected reason.

Laying-off means putting aside or discharging workmen temporarily. Gauhati Printing Press case: the workmen of the press were laid-off on the ground that it was not possible to run the press as its managing director was old and his assistant had fractured his leg. Held, this was no ground for lay-off. A workman shall be deemed to have been laid-off for any day, if he presents himself for work at the appointed time and is not given employment by the employer within 2 hours. If the workman is asked to present himself during the second half of the shift for the day and is given employment then he will be deemed to have been laid-off only for one half of the day. Lay-off can occur in a continuing business and failure to give employment to workmen on account of closure of the business is not lay-off. Lay-off Compensation: Sec. 25-M: Whenever a workman (a) who is not a casual or a badli workman, (b) whose name is on the muster roll of the establishment, and (c) who has completed minimum one year of continuous service under the employer is laid-off, he shall be paid by the employer, compensation equal to 50% of the total of basic wages plus D.A. which would have been payable to him had he not been so laid-off.

The laid-off workman is not entitled to lay-off compensation if: a) (i) he refuses to accept alternative employment in the same establishment, or (ii) in any other establishment belonging to the same employer, (iii) situated in the same town or village or situated within a radius of five miles from the establishment to which he belongs; and (iv) such alternative employment does not call for any special skill and experience and can be done by the workman, b) he does not present himself for work at the establishment and at the appointed time during normal working hours at least once every day c) Lay-off is due to a strike or go-slow on the part of the workmen in any part of the establishment. In case of an industrial establishment employing 100 or more workers, no workman other than a casual or a badli workman can be laid-off except with the previous permission of the govt., unless such lay-off is due to shortage of power, or some natural calamity and in case of mines, such lay-off is due to also fire, flood, excess of inflammable gas or explosion. Closure, Retrenchment Closure Sec. 2(cc) means the permanent closing down of a place of employment or part thereof. Retrenchment Sec. 2(oo) means the termination by the employer, of the service of a workman for any reason whatsoever, otherwise than as a punishment inflicted by way of disciplinary action. It does not include:

a) Voluntary retirement of the workman; or b) Retrenchment of the workman on reaching the age of superannuation, if the contract of employment contains a stipulation in that behalf; or c) Termination of the service of the workman as a result of the non-renewal of the contract of employment between the employer and the workman on its expiry or of such contract being terminated under a stipulation contained in the contract; or d) Termination of the services of a workman on the ground of continued ill-health. Termination of service for any reason whatsoever, unless it falls in excepted categories, amounts to retrenchment.

Authorities for Settlement of Industrial Disputes The Act provides elaborate and effective machinery for bringing about industrial peace by setting up various authorities for the investigation and settlement of industrial disputes. Authorities appointed under ID Act : Conciliation Machinery: a) b) c) d) Works Committee Conciliation Officer Board of Conciliation Court of Inquiry

Adjudication Machinery: a) Labour Court b) Industrial Tribunal c) National Tribunal The Act provides for three modes of settlement of disputes: i. ii. iii. Voluntary settlement and conciliation, Adjudication, and Arbitration

Conciliation Machinery: Works Committees, Conciliation Officers, Boards of Conciliation and Courts of Inquiry constitute the conciliation machinery for settlement of industrial disputes. They can only promote settlement of industrial disputes or inquire into them but cannot make any awards which are binding on the parties.

Adjudication Machinery: Labour Courts, Industrial Tribunals, and National Tribunals

Sec. 10A makes provision for voluntary reference of disputes to arbitration. ***************************