The Industrial Disputes Act

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10/24/2011 ID ACT, 1947 1 Presentation on Labour laws Topic: Industrial Disputes Act ,1947 . by: Debraj

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What is industrial dispute ? :

What is industrial dispute ? The industrial means any dispute or difference between:- ( i ) Employers and employers (ii) Employers and Workmen or (iii) Workmen and workmen, which is connected with (a) Employment of non-employment or (b) Terms of employments, or (c) The condition of labour of any person. 10/24/2011 3 ID ACT, 1947

Objects of the Act :

Objects of the Act 1 . To secure Industrial peace: (a) By preventing and settling industrial disputes between the employers and workmen, (b) By securing and preserving amity and good relations between the employers and workmen through an internal works Committee, and (c) By promoting good relations through an external machinery of conciliation, courts of Inquiry, labour Courts, Industrial Tribunals and National Tribunals. 2. To ameliorate the condition of workmen in the Industry: By redressal of grievances through a statutory machinery By providing job security. 10/24/2011 4 ID ACT, 1947

Extent of the Act: :

Extent of the Act : The Act extends to the whole of the India. It applies to all the Industries whether they be carried on by private owners o by the Govt. The Act has been amended tome to time . The latest amendment to the Act was made in August, 1984. 10/24/2011 5 ID ACT, 1947

Important terms used in the Act:

Important terms used in the Act Average Pay Award Boards Closure Conciliation Officer Conciliation Proceedings Controlled Industry Court Employer 10/24/2011 6 ID ACT, 1947

Contd…..:

Contd….. Executive and office bearer in relation to a trade Union: Independent Person Industrial Establishment & Undertaking Labour Court Lay-off Lock-out National Tribunal Public Utility Service Retrenchment 10/24/2011 7 ID ACT, 1947

Appropriate Govt: :

Appropriate Govt : In relation to any industrial dispute concerning any industry carried on by or under the authority of the Central Government, or by a railway company or concerning any such controlled industry as may be specified in this behalf by the Central Government or in relation to an industrial dispute Concerning a Dock Labour Board established under section 5A of the Dock Workers (Regulation of employment) Act; 1948 State Insurance Corporation established under section 3 of the Employees State Insurance Act, 1948 (34of 1948), or the Board of Trustees constituted under section 3A of the Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948 (46 of 1948), or the Central Board of Trustees and the State Boards of Trustees constituted under section 5A and section 5B, respectively, 10/24/2011 8 ID ACT, 1947

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Chapter : II Sec.7 :

Chapter : II Sec.7 Constituted by appropriate government. Consists of : One person appointed by appropriate government as member. A Presiding officer of the labour court He is or has been a judge of a H.Court . He has, for a period of not less than 3 years been a District Judge or an Additional D.J. or held any Judicial Office in India for >=7 years. Labour Courts Objective: Adjudication of industrial disputes & other functions as assigned to them. 10/24/2011 13 ID ACT, 1947

Chapter II Sec.7-A:

Chapter II Sec.7-A Objective is to “adjudication of the individual disputes.” Consists of: Two persons appointed as assessors to advise the Tribunal in the proceedings. ( other provisions are same as labour courts ) Tribunals Constituted by state government more a period > 5 years . 10/24/2011 14 ID ACT, 1947

Chapter II Sec.7-B:

Chapter II Sec.7-B Objective is to “ adjudication of individual disputes.” in questions of National importance. Or in case of industrial establishments in more than one state. Consists of : One person as member appointed by central government. Presiding officer who is/ has been a Judge of a H.C. Two persons as assessors to advise the National Tribunal in proceedings. National Tribunals Constituted by central government. 10/24/2011 15 ID ACT, 1947

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Where the appropriate Government is of opinion that the application of the provisions of section 9A to any class of industrial establishments or to any class of workmen employed in any industrial establishment affect the employers in relation thereto so prejudicially that such application may cause serious repercussion on the industry concerned and that public interest so requires, the appropriate Government may, by notification in the Official Gazette, direct that the provisions of the said section shall not apply or shall apply, subject to such conditions as may be specified in the notification, to that class of industrial establishments or to that class of workmen employed in any industrial establishment. 10/24/2011 20 ID ACT, 1947

CHAPTER III Section 10. Reference of dispute to Boards, Courts or Tribunals: :

CHAPTER III Section 10. Reference of dispute to Boards, Courts or Tribunals: Where the appropriate Government is of opinion that any industrial dispute exists or is apprehended, it may at any time, by order in writing- (a) Refer the dispute to a Board for promoting a settlement thereof or (b) Refer any matter appearing to be connected with or relevant to the dispute to a Court for inquiry or (c) Refer the dispute or any matter appearing to be connected with, or relevant to, the dispute, if it relates to any matter specified in the Second Schedule, to a Labour Court for adjudication; or (d) Refer the dispute or any matter appearing to be connected with, or relevant to, the dispute, whether it relates to any matter specified in the Second Schedule or the Third Schedule, to a Tribunal for adjudication. 10/24/2011 21 ID ACT, 1947

CHAPTER III Section10A Voluntary reference of disputes to arbitration : :

CHAPTER III Section10A Voluntary reference of disputes to arbitration : Where any industrial dispute exists or is apprehended and the employer and the workmen agree to refer the dispute to arbitration, they may, at any time before the dispute has been referred under section 10 to a Labour Court or Tribunal or National Tribunal, by a written agreement, refer the dispute to arbitration and the reference shall be to such person or persons (including the presiding officer of a Labour Court or Tribunal or National Tribunal) as an arbitrator or arbitrators as may be specified in the arbitration agreement. 10/24/2011 22 ID ACT, 1947

CHAPTER IV: Section11. Procedure and power of conciliation officers, Boards, Courts and Tribunals : :

CHAPTER IV: Section11. Procedure and power of conciliation officers, Boards, Courts and Tribunals : 10/24/2011 23 ID ACT, 1947

Section11A.:

Section11A. Where an industrial dispute relating to the discharge or dismissal of a workman has been referred to a Labour Court, Tribunal or National Tribunal for adjudication and, in the course of the adjudication proceedings, the Labour Court, Tribunal or National Tribunal, as the case may be, is satisfied that the order of discharge or dismissal was not justified, it may, by its award, set aside the order of discharge or dismissal and direct re-instatement of the workman on such terms and conditions, if any, as it thinks fit, or give such other relief to the workman including the award of any lesser punishment in lieu of discharge or dismissal as the circumstances of the case may require Powers of Labour Court, Tribunals and National Tribunals to give appropriate relief in case of discharge or dismissal of workmen. – 10/24/2011 ID ACT, 1947 24

Section12. Duties of conciliation officers. – :

Section12. Duties of conciliation officers. – 10/24/2011 25 ID ACT, 1947

Contd………:

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Section13. Duties of Board. - :

Section13. Duties of Board. - (1) Where a dispute has been referred to a Board under this Act, it shall be the duty of the Board to endeavour to bring about a settlement of the same and for this purpose the Board shall, in such manner as it thinks fit and without delay, investigate the dispute and all matters affecting the merit and the right settlement thereof and may do all such things as it thinks fit for the purpose of inducing the parties to come to a fair and amicable settlement of the dispute. (2) If a settlement of the dispute or of any of the matters in dispute is arrived at in the course of the conciliation proceedings, the Board shall send a report thereof to the appropriate Government together with a memorandum of the settlement signed by the parties to the dispute. 10/24/2011 27 ID ACT, 1947

Contd……..:

Contd…….. (3) If no such settlement is arrived at, the Board shall, as soon as practicable after the close of the investigation, send to the appropriate Government a full report setting for the proceedings and steps taken by the Board for ascertaining the facts and circumstances relating to the dispute and for bringing about a settlement thereof, together with a full statement of such facts and circumstances, its findings thereon, the reasons on account of which, in its opinion, a settlement could not be arrived at and its recommendations for the determination of the dispute. (4) If, on the receipt of a report under sub-section (3) in respect of a dispute relating to a public utility service, the appropriate Government does not make a reference to a Labour Court, Tribunal or National Tribunal under section 10, it shall record and communicate to the parties concerned its reasons therefore. 10/24/2011 28 ID ACT, 1947

Section14. Duties of Courts. – :

Section14. Duties of Courts. – 10/24/2011 29 ID ACT, 1947

Section 16. Form of report or award. – :

Section 16. Form of report or award. – (l) The report of a Board or Court shall be in writing and shall be signed by all the members of the Board or Court, as the case may be: Provided that nothing in this section shall be deemed to prevent any member of the Board or Court from recording any minute of dissent from a report or from any recommendation made therein. (2) The award of a Labour Court or Tribunal or National Tribunal shall be in writing and shall be signed by its presiding officer. 10/24/2011 30 ID ACT, 1947

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Chapter V Sec.22:

Chapter V Sec.22 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 of giving such notice; or (c) before the expiry of the date of strike specified in any such notice as aforesaid; or (d) during the pendency of any conciliation proceedings before a conciliation officer and seven days after the conclusion of such proceedings. STRIKES AND LOCK-OUTS S.22. Prohibition of strikes and lock-outs.— 10/24/2011 34 ID ACT, 1947

Chapter V Sec.22:

Chapter V Sec.22 (2) No employer carrying on any public utility service shall lock-out any of his workmen— (a) without giving them notice of lock-out as hereinafter provided, within six weeks before locking-out; or (b) within fourteen days of giving such notice; or (c) before the expiry of the date of lock-out specified in any such notice as aforesaid; or (d) during the pendency of any conciliation proceedings before a conciliation officer and seven days after the conclusion of such proceedings. CONTD.. 10/24/2011 35 ID ACT, 1947

Chapter V Sec.23:

Chapter V Sec.23 No workman who is employed in any industrial 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 7 days after the conclusion of such proceedings; during the pendency of proceedings before [a Labour Court, Tribunal or National Tribunal] and two months, after the conclusion of such proceedings; General prohibition of strikes and lock-outs.— 10/24/2011 36 ID ACT, 1947

Chapter Sec.:

Chapter Sec. b) during the pendency of arbitration proceedings before an arbitrator and two months after the conclusion of such proceedings or 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. Contd ….. 10/24/2011 37 ID ACT, 1947

Chapter V Sec.24 :

Chapter V Sec.24 A strike or a lock-out shall be illegal if— ( i ) it is commenced or declared in contravention of section 22 or section 23; or (ii)it is continued in contravention of an order made under sub-section (3) of section 10 [or sub-section (4A) of section 10A]. Where a strike or lock-out in pursuance of an industrial dispute has already commenced and is in existence at the time of the reference of the dispute to a Board, an arbitrator, Labour Court, Tribunal or National. Illegal strikes and lock-outs.— 10/24/2011 38 ID ACT, 1947

Chapter V Sec.24 :

Chapter V Sec.24 Where a strike or lock-out in pursuance of an industrial dispute has already commenced and is in existence at the time of the reference of the dispute to a Board, an arbitrator, Labour Court, Tribunal or National Tribunal, the continuance of such strike or lock-out shall not be deemed to be illegal, provided that such strike or lock-out was not at its commencement in contravention of the provisions of this Act or the continuance thereof was not prohibited under sub-section (3) of section10 [or sub-section (4A) of section 10A]. A lock-out declared in consequence of an illegal strike or a strike declared in consequence of an illegal lock-out shall not be deemed to be illegal. CONTD………… 10/24/2011 39 ID ACT, 1947

Chapter V Sec.25 :

Chapter V Sec.25 No person shall knowingly expend or apply any money in direct furtherance or support of any illegal strike or lock-out. Prohibition of financial aid to illegal strikes and lock-outs. 10/24/2011 40 ID ACT, 1947

Chapter V Sec.25 :

Chapter V Sec.25 Conditions for Laying off Failure, refusal or inability of an employer to providework due to • Shortage of coal, power or raw material. • Accumulation of stocks. • Breakdown of machinery. • Natural calamity. Sec.25-C Lay off & Payment of Compensation – 10/24/2011 41 ID ACT, 1947

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(1) Sections 25C to 25E inclusive [shall not apply to Industrial Establishments to which Chapter VB applies, or—] (a) to industrial establishments in which less than fifty workmen on an average per working day have been employed in the preceding calendar month; or (b) to industrial establishments which are of a seasonal character or in which work is performed only intermittently. (2) If a question arises whether an industrial establishment is of a seasonal character or whether work is performed therein only intermittently, the decision of the appropriate Government thereon shall be final. . Application of sections 25-C to 25-E 10/24/2011 42 ID ACT, 1947

Chapter V Sec. 25B :

Chapter V Sec. 25B a workman shall be said to be in continuous service for a period if he is, for that period, in uninterrupted service, including service which may be interrupted on account of sickness or authorized leave or an accident or a strike which is not illegal, or a lock-out or a cessation of work which is not due to any fault on the part of the workman; Definition of continuous service.—For the purposes of this Chapter,— 10/24/2011 43 ID ACT, 1947

Chapter Sec.25B :

Chapter Sec.25B where a workman is not in continuous service within the meaning of clause (1) for a period of one year or six months, he shall be deemed to be in continuous service under an employer— (a) for a period of one year, if the workman, during a period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than— ( i ) one hundred and ninety days in the case of a workman employed below ground in a mine; and (ii) two hundred and forty days, in any other case; (b) for a period of six months, if the workman, during a period of six calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than. ( i ) ninety-five days, in the case of workman employed below ground in a mine; and (ii) one hundred and twenty days, in any other case. CONTD…… 10/24/2011 44 ID ACT, 1947

Chapter V Sec.25C :

Chapter V Sec.25C Whenever a workman (other than a badli workman or a casual workman) whose name is borne on the muster rolls of an industrial establishment and who has completed not less than one year of continuous service under an employer is laid-off, whether continuously or intermittently, he shall be paid by the employer for all days during which he is so laid-off, except for such weekly holidays as may intervene, compensation which shall be equal to fifty per cent, of the total of the basic wages and dearness allowance that would have been payable to him had he not been so laid-off. Right of workmen laid-off for compensation 10/24/2011 45 ID ACT, 1947

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CONTD…… 10/24/2011 46 ID ACT, 1947

Chapter Sec.25D :

Chapter Sec.25D Notwithstanding that workmen in any industrial establishment have been laid off, It shall be the duty of every employer to maintain for the purposes of this Chapter a muster roll, and to provide for the making of entries therein by workmen who may present themselves for work at the establishment at the appointed time during normal working hours. Duty of an employer to maintain muster rolls of workmen.— 10/24/2011 47 ID ACT, 1947

Chapter Sec.25E :

Chapter Sec.25E No compensation shall be paid to a workman who has been laid-off— if he refuses to accept any alternative employment in the same establishment from which he has been laid-off, or in any other establishment belonging to the same employer situate in the same town or village or situate within a radius of five miles from the establishment to which he belongs. if he does not present himself for work at the establishment at the appointed time during normal working hours at least once a day; if such laying-off is due to a strike or slowing-down of production on the part of workmen in another part of the establishment. Workmen not entitled to compensation in certain cases 10/24/2011 48 ID ACT, 1947

Chapter Sec.25F :

Chapter Sec.25F No workman employed in any industry who has been in continuous service for not less than one year under an employer shall be retrenched by that employer until— the workman has been given one month’s notice in writing indicating the reasons for retrenchment and the period of notice has expired, or the workman has been paid in lieu of such notice, wages for the period of the notice; the workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days’ average pay [for every completed year of continuous service] or any part thereof in excess of six months; and Conditions precedent to retrenchment of workmen.— 10/24/2011 49 ID ACT, 1947

Chapter Sec.25FF :

Chapter Sec.25FF Where the ownership of management of an undertaking is transferred, whether by agreement or by operation of law, from the employer in relation to that undertaking to a new employer, every workman who has been in continuous service for not less than one year in that undertaking immediately before such transfer shall be entitled to notice and compensation in accordance with the provisions of section 25F , as if the workman had been retrenched. Compensation to workmen in case of transfer of undertakings - 10/24/2011 50 ID ACT, 1947

Chapter v Sec 25FFF. :

Chapter v Sec 25FFF. Where an undertaking is closed down for any reason whatsoever, every workman who has been in continuous service for not less than one year in that undertaking immediately before such closure shall, subject to the provisions of sub-section (2), be entitled to notice and compensation in accordance with the provisions of section 25F , as if the workman had been retrenched Compensation to workmen in case of closing down of undertakings.— 10/24/2011 51 ID ACT, 1947

Chapter Sec. 25FFA :

Chapter Sec. 25FFA An employer who intends to close down an undertaking shall serve, at least sixty days before the date on which the intended closure is to become effective, a notice, in the prescribed manner, on the appropriate Government stating clearly the reasons for the intended closure of the undertaking. Provided that nothing in this section shall apply to— (a) an undertaking in which— less than fifty workmen are employed, or less than fifty workmen were employed on an average per working day in the preceding twelve months, (b) an undertaking set up for the construction of buildings, bridges, roads, canals, dams or for other construction work or project. Sixty days’ notice to be given of intention to close down any undertaking.— 10/24/2011 52 ID ACT, 1947

Chapter Sec 25G :

Chapter Sec 25G Where any workman in an industrial establishment, who is a citizen of India is to be retrenched and he belongs toa particular category of workmen in that establishment, in the absence of any agreement between the employer and the workman in this behalf, the employer shall ordinarily retrench the workman who was the last person to be employed in that category, unless for reasons to be recorded the employer retrenches any other workman. Procedure for retrenchment 10/24/2011 53 ID ACT, 1947

Chapter Sec. 25H :

Chapter Sec. 25H Where any workmen are retrenched, and the employer proposes to take into his employ any persons, he shall, in such manner as may be prescribed, give an opportunity [to the retrenched workmen who are citizens of India to offer themselves for re employment, and such retrenched workmen] who offer themselves for re employment shall have preference over other persons. Re-employment of retrenched workmen. 10/24/2011 54 ID ACT, 1947

Offence-Punishment S26 TO S. 31 :

Offence- Punishment S26 TO S. 31 Committing unfair labour practices Illegal strike and lock- ourts Instigation etc. for illegal strike or lock-outs. Giving financial aid to illegal strikes and lock-outs. Breach of settlement or award Disclosing confidential information pertaining to Sec.21 Closure without 60 days’ notice under Sec.25 FFA Contravention of Sec.33 pertaining to change of conditions of Service during pendency of dispute etc. Imprisonment of upto 6 months or with fine upto Rs.3,000. Imprisonment upto one month or with fine upto Rs.50(Rs.1000 for lock-out) or with both. Imprisonment upto 6 months or with fine upto Rs.1,000 Imprisonment for 6 months or with fine upto Rs.1,000 Imprisonment upto 6 months or with fine.On continuity of offence fine uptoRs.200 per day Imprisonment upto 6 months or with fine upto Rs.1,000 Imprisonment upto 6 months or with fine upto Rs.5,000 Imprisonment upto 6 months or fine upto Rs.1,000. Fine upto Rs.100 10/24/2011 ID ACT, 1947 55

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Chapter VII Sec.33:

Chapter VII Sec.33 Not to alter to the prejudice of workmen concerned the condition of service. To seek Express permission of the concerned authority by paying one month’s wages on dismissal, discharge or punish a protected workman connected with the dispute. To seek approval of the authority by paying one month’s wages before altering condition of service, dismissing or discharging or punishing a workman. Conditions of service etc. to remain unchanged under certain circumstances during pendency of proceedings 10/24/2011 57 ID ACT, 1947

Chapter VII Sec.33:

Chapter VII Sec.33 Not to alter to the prejudice of workmen concerned the condition of service. To seek Express permission of the concerned authority by paying one month’s wages on dismissal, discharge or punish a protected workman connected with the dispute. To seek approval of the authority by paying one month’s wages before altering condition of service, dismissing or discharging or punishing a workman. Conditions of service etc. to remain unchanged under certain circumstances during pendency of proceedings 10/24/2011 58 ID ACT, 1947

Sec .36-A. Power to remove difficulties.— :

Sec .36-A. Power to remove difficulties.— 10/24/2011 59 ID ACT, 1947

Chapter VII Sec. 36B, :

Chapter VII Sec. 36B, industrial establishments or undertakings carried on by a department of that Government that adequate provisions exist for the investigation and settlement of industrial disputes in respect of workmen employed in such establishment or undertaking or class of establishments or undertakings, it may, by notification in the Official Gazette, exempt, conditionally or unconditionally such establishment or undertaking or class of establishments or undertakings from all or any of the provisions of this Act. Power to exempt.—Where the appropriate Government is satisfied in relation to any industrial establishment or undertaking or any class of 10/24/2011 60 ID ACT, 1947

Chapter VII Sec. 37:

Chapter VII Sec. 37 No suit, prosecution or other legal proceeding shall lie against any person for anything which is in good faith done or intended to be done in pursuance of this Act or any rules made thereunder . Protection of action taken under the Act.— 10/24/2011 61 ID ACT, 1947

Chapter VII Sec. 37:

Chapter VII Sec. 37 No suit, prosecution or other legal proceeding shall lie against any person for anything which is in good faith done or intended to be done in pursuance of this Act or any rules made thereunder. Protection of action taken under the Act.— 10/24/2011 62 ID ACT, 1947

Chapter VII Sec. 38. :

Chapter VII Sec. 38. The powers and procedure of conciliation officers, Boards, Labour Courts, Tribunals and National Tribunals including rules as: to the summoning of witnesses, the production of documents relevant to the subject-matter of an inquiry or investigation the number of members necessary to form a quorum and the manner of submission of reports and awards; the form of arbitration agreement. etc. Power to make rules.— The appropriate Government in terms of …………… 10/24/2011 63 ID ACT, 1947

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Chapter VII Sec. 40. :

Chapter VII Sec. 40. By appropriate government First schedule By central government Ad to or alter or amend the second & third schedule of the Act. Notification of amendment to be laid before the state legislature by the state government & before the parliament by the central government. Power to amend the schedules (in the event of expedient &or necessity in the public interest) 10/24/2011 65 ID ACT, 1947

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