THE INDUSTRIAL

DISPUTES ACT, 1947

DEFINITIONS

1.

2.

INDUSTRY:
Old definition:- industry means any business,
trade, undertaking, manufacture or calling of
employees and includes any calling, service,
employment, handicraft, or industrial
occupation, or avocation of workmen.
Bangalore water supply v. A.Rajappa, A.I.R.,
[1949]F.C.111. Any systematic activity
organised or arranged in a manner in which trade
or business is generally organised or arranged
will be industry.

 Industrial Dispute:- [Sec.2(k)] means any

dispute or difference between employers

and employers, employers and workmen or
workmen and workmen which is connected
with the employment or non employment or
terms of employment or the conditions of
labour of any person.

 LAY-OFF:- [sec.2(kkk)] means the

1.
2.
3.
4.

failure, refusal or inability of an employer

to give employment to a workman due to Shortage of coal, power or raw material.
Accumulation of stocks
Break down of machinery
Natural calamity or other connected
reasons

 LOCK-OUT:- [sec.2(l)] means temporary

closing or suspension of work or the refusal by an

employer to continue to employ any number of
workman.
PUBLIC UTILITY SERVICE:- [sec.2(n)]
RETRENCHMENT:- [sec.2(oo)] means
termination of service of a workman for any
reason other than as punishment by way of
disciplinary action.

STRIKE:- [sec.2(q)] means cessation of work

by persons employed in any industry acting in
combination or concerted refusal to continue to
work or accept employment or refusal to
continue to work or to accept employment under
a common understanding.

UNFAIR LABOUR PRACTICE:-[sec.2(ra)]

On the part of employers
On the part of workmen and T.Us

1.
2.

 WORKMAN [sec.2(s)] means any person

including an apprentice employed in any industry

to do any manual, unskilled, skilled, technical,
operational, clerical or supervisory work for hire
or reward and includes in relation to an industrial
dispute any person who has been dismissed
discharged or retrenched in connection with or as
a consequence of that dispute or whose dismissal,
discharged or retrenchment led to that dispute.

CONCILIATION
MACHINERY
WORKS COMMITTEES [Sec.3]
CONCILIATION OFFICERS [Sec.4]
Duties of C.Os.
1. To hold conciliation proceedings
2. To investigate the dispute
3. To send a report and a memorandum of

settlement to Govt.
4. To send full report in case of no settlement

5.

BOARD OF CONCILIATION [Sec.5]

Duties:
To bring about a settlement
To send a report and memorandum
To send a full report in case of no settlement
To communicate reasons to the parties if no further
reference made
To submit report within two months

COURT OF ENQUIRY [Sec.6]

1.
2.
3.
4.

ADJUDICATION MACHINERY
Labour Courts [sec.7]:
1. Matters within the jurisdiction of labour

courts.(The Second Schedule).

2. Duties to adjudicate and give award.
3. Powers to enter premises and to have
powers of civil court.

 Industrial Tribunals [sec.7-A]

1. Matters within the jurisdiction.
2. Reference of disputes.
3. Prohibition of strike or lock out.
4. Duties
5. Powers to enter premises and to have the

powers of civil court.

6. Power to appoint assessors
7. Power to avoid costs

 National Tribunal [sec.7-B]

1. Appointment and constitution
2. Reference of dispute
3. Jurisdiction of Labour Court and Industrial
Tribunal to cease on a reference made to National
Tribunal
4. Jurisdiction
5. Award
6. powers

CONDITIONS OF SERVICE

1.
2.
3.
4.
5.

Means terms of employment governed by

Contract between the employer and employee.
The statute law
The decisions of the court
The standing orders
Custom and usages of trade


1.
2.
3.
4.
5.
6.
7.

Notice of change to be given for items covered

in the Fourth Schedule.
Wages, the period and mode of payment
Contribution to PF or pension fund
Compensatory and other allowances
Hours of work and rest intervals
Leave with wages and holidays
Introduction of new rules or alteration of
existing rules
Withdrawal of any concession or privilege etc.

AWARD AND SETTLEMENT

Form of report or award [sec.16]

Publication of reports and awards[sec.17]
Commencement of award[sec.17-A]
Payment of full wages pending
proceedings[sec.17-B]
Persons on whom settlements and awards or
binding[sec.18]
Period of operation and awards[sec.19]
Penalty for breach of settlement or award[sec. 29]

STRIKES AND LOCK-OUTS

[Secs.22 to 25]

1.
2.
3.
4.
5.
6.

Prohibition of strikes and lock-outs

Strike in a public utility service
Lock-out in a public utility service
Notice of lock-out or strike not necessary in a
certain cases
Intimation of notices of strike or lock-out to be
given within five days
Strike and lock-out in an industrial
establishment.
Illegal strikes and lock-outs

LAY-OFF
Right of work men laid-off for compensation

[sec.25-C]
Duty of an employer to maintain muster
rules[sec.25-D]
Workmen not entitled to compensation in certain
cases[sec.25-E]

RETRENCHMENT
Condition precedent to retrenchment of workmen

[sec.25-F]
Procedure for retrenchment [sec.25-G]
Re-employment of retrenched workmen [25-H]

TRANSFER AND CLOSING

DOWN
Compensation to workmen in case of transfer of

undertakings [sec.25-FF]
Sixty notice to be given to close down any
undertaking [sec.25-FFA]
Compensation to workmen in case of closing
down [sec.25-FFF]

PROHIBITION OF LAY-OFFS
[sec.25-M]
Lay-off to be with permission from appropriate

government or specified authority

Application by the employer for permission
Application for permission to continue lay-off in a
mine
Order granting or refusing permission for lay-off
to be communicated to employer and workmen
Presumption of permission if no order
communicated within sixty days

 Order binding on all parties for one year

Review of order
Lay-off illegal in certain cases
Exemption
No lay-off if alternative employment is offered
Penalty for illegal lay-off

CONDITIONS PRECEDENT TO
RETRENCHMENT
Three months notice or prior permission of

appropriate government
Application to be made for permission
Order to be communicated to employer and
workmen
Presumption of permission
Order binding on all parties for one year
Review of order

 Consequences of illegal retrenchment

Exemption
Compensation- fifteen days wages for every

completed year of service

Penalty for illegal retrenchment

PROCEDURE FOR CLOSING

DOWN
Application to be made at least 90 days before the

intended date of closure

Order to be communicated to employer and
workmen
Presumption of permission
Order binding on all parties for one year
Review of order
Consequences of illegal closure

THE PAYMENT
OF BONUS
ACT 1965

OBJECT OF THE ACT

1.

2.

Hutti Gold Mines Kamgar Sangh v. Govt. of

India, (1973) 1 L.L.J.46 (A.P)
Associated Cement Cos.Ltd (Dwarka &
Bombay) V.Their Workmen, (1956) S.C.967
To maintain peace and harmony between labour
and capital by allowing the employee, the
recognition of their right, to share in the
prosperity of the establishment.
To impose statutory liability of an employer of
every establishment covered by the Act.

APPLICATION OF THE ACT

The Act applies to every factory as defined in

sec.2(m) of the Factories Act 1948.

To every other establishment in which 20 or more
persons are employed on any day during the
accounting year.
Minimum bonus of 8.33% of the wages or salary
(upto Rs.3500/- per month).
Act not to apply certain categories of employees
(sec.32)

DEFINITIONS
Allocable surplus :- 67% or 60%, as the case may

be, of available surplus.

Available surplus:- the available surplus in respect
of any accounting year is the gross profit for that
year after deducting therefrom the sums referred to
in sec 6.
Employee means any person other than an
apprentice drawing a salary or wage not exceeding
RS10,000 per month.

DETERMINATION OF BONUS

1.
2.

3.

Computation of gross profits.(sec 4).

Gross profits of a banking company to be
determined as per the first schedule.
Computation of gross profits of non-banking
establishments to be done as specified in second
schedule.
Prior charges to be deducted from gross profits
as per third schedule.

 Set on and Set off of allocable surplus. The

manor of setting on and setting off of allocable

surplus is illustrated in the fourth schedule.
Bonus shall be payable only in respect of
accounting year in which the employer derives
profit from such establishment, during the first
five accounting years.
6th and 7th accounting years.
From the 8th accounting year.

Thank you

Lab Test-III

1.
2.
3.

1.

Part A. (each question 5 marks)

Write short notes on effects of
registration.
Explain Doctrine of ultra vires.
Explain Doctrine of indoor management
with a suitable case law.
Part B.
(10 Marks)
Discuss the circumstances in which the
corporate veil will be lifted by Courts.