Il Unit 2

The Industrial Disputes Act, 1947 is an important piece of legislation in India that aims to
regulate industrial relations and provide a framework for the prevention and resolution of
disputes between employers and employees. Here's an overview of the key provisions and
objectives of the Industrial Disputes Act, 1947:
1. Scope and Applicability:
 The Act applies to all industries, whether carried on by the government,

private individuals, or bodies corporate, except those specified in the Schedule
to the Act.
 It covers both organized and unorganized sectors, including factories, mines,
plantations, railways, ports, and other establishments.
2. Definition of Industrial Dispute:
 The Act defines an industrial dispute as 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 or with the conditions of labor.
3. Prohibition of Strikes and Lockouts during Pendency of Proceedings:
 During the pendency of conciliation proceedings and arbitration proceedings

before a Board, Court, or Tribunal, or while proceedings are pending before a
Labor Court or National Tribunal, no party to the dispute shall go on strike or
lockout.
4. Authorities for the Settlement of Industrial Disputes:
 The Act provides for the appointment of conciliation officers, boards of

conciliation, courts of inquiry, labor courts, and industrial tribunals for the
settlement of industrial disputes.
 These authorities have powers to investigate disputes, conciliate between
parties, adjudicate disputes, and issue awards or recommendations.
5. Layoff, Retrenchment, and Closure:
 The Act lays down provisions relating to the conditions under which an
employer can lay off, retrench, or close down an establishment.
 It provides for the payment of compensation to workers in case of
retrenchment or closure of the establishment.
6. Strikes and Lockouts:
 The Act regulates the right to strike and lockout and lays down conditions
under which these actions can be initiated.
 It prohibits strikes and lockouts in certain essential services, such as public
utilities, without giving notice or obtaining permission from the appropriate
authority.
7. Settlements and Awards:
 The Act recognizes collective bargaining as a means of resolving disputes and

encourages the settlement of disputes through mutual agreement between the
parties.
 Settlements arrived at through conciliation or arbitration are binding on the
parties.
 Awards issued by labor courts or industrial tribunals are enforceable and
binding on the parties.
8. Penalties:
 The Act provides for penalties for contravention of its provisions, such as
conducting illegal strikes or lockouts.
 Penalties include fines and imprisonment for individuals found guilty of
offenses under the Act.
The Industrial Disputes Act, 1947 aims to promote industrial peace and harmony by
providing mechanisms for the prevention and resolution of disputes between employers and
employees. It seeks to protect the interests of both parties while ensuring the orderly conduct
of industrial relations in the country.
1. Industry:
 In a general sense, an industry refers to a group of businesses or

enterprises involved in the production or manufacturing of goods or
the provision of services that are related in some way.
 Industries can be classified based on various criteria, such as the type of
goods or services produced (e.g., manufacturing industry, service
industry), the nature of the production process (e.g., heavy industry,
light industry), or the target market (e.g., consumer goods industry,
healthcare industry).
 Industries play a crucial role in economic development by generating
income, providing employment opportunities, driving innovation, and
contributing to overall growth and prosperity.
2. Industrial Dispute:
 An industrial dispute refers to a disagreement or conflict between

employers and employees or between groups of employees, typically
arising from issues related to employment conditions, wages, benefits,
working hours, or other terms and conditions of employment.
 Industrial disputes can occur in any industry or workplace and may
involve one or more parties, such as employers, employees, trade
unions, or government authorities.
 Disputes may manifest in various forms, including strikes (where
workers refuse to work), lockouts (where employers deny workers
access to the workplace), protests, grievances, or legal actions.
 The resolution of industrial disputes often involves negotiation,
mediation, conciliation, arbitration, or adjudication by relevant
authorities or bodies, such as labor courts, tribunals, or industrial
relations commissions.
 Effective management and resolution of industrial disputes are
essential for maintaining harmonious labor relations, promoting
productivity, and ensuring the smooth functioning of industries and
economies.
Need and objective of the Industrial disputes Act 1947
for the prevention and resolution of industrial disputes. Its primary objectives and the
reasons for its necessity are as follows:
1. Peaceful Resolution of Disputes:
 One of the key objectives of the Industrial Disputes Act, 1947 is to

promote the peaceful resolution of conflicts and disputes between
employers and employees in industrial establishments.
 By providing mechanisms such as conciliation, arbitration, and
adjudication, the Act aims to prevent disruptions to production and
maintain industrial peace and harmony.
2. Protection of Workers' Rights:
 The Act seeks to safeguard the rights and interests of workers by

regulating employment conditions, wages, benefits, working hours, and
other terms of employment.
 It establishes provisions for the layoff, retrenchment, and closure of
establishments, ensuring that workers are not arbitrarily dismissed or
deprived of their livelihoods.
3. Promotion of Collective Bargaining:

 Collective bargaining is a cornerstone of industrial relations, allowing
workers to negotiate with employers collectively to secure better terms
and conditions of employment.
 The Industrial Disputes Act, 1947 encourages and regulates the process
of collective bargaining, enabling workers to bargain effectively and
strengthening their bargaining power.
4. Prevention of Unfair Labor Practices:
 The Act prohibits unfair labor practices by employers, such as

discrimination, victimization, coercion, and interference with workers'
rights to organize and engage in collective bargaining.
 It also prohibits lockouts and strikes that are deemed illegal under
certain circumstances, ensuring that disputes are resolved through
peaceful means.
5. Settlement of Disputes through Legal Mechanisms:
 The Act establishes legal mechanisms, including conciliation boards,

courts of inquiry, labor courts, and industrial tribunals, to facilitate the
settlement of industrial disputes.
 These mechanisms provide avenues for parties to resolve disputes
through negotiation, mediation, arbitration, or adjudication, ensuring
that disputes are resolved fairly and expeditiously.
6. Promotion of Industrial Peace and Productivity:
 By providing a legal framework for the prevention and resolution of

disputes, the Act contributes to the maintenance of industrial peace
and stability.
 Industrial peace fosters a conducive environment for productivity,
investment, and economic growth, benefiting both employers and
employees.
Overall, the Industrial Disputes Act, 1947 plays a crucial role in regulating industrial
relations, protecting workers' rights, promoting collective bargaining, and ensuring
the peaceful resolution of conflicts in the workplace. It serves as a cornerstone of
labor legislation in India, contributing to social justice, economic development, and
industrial harmony.
Procedure and machinery for settlement
The Industrial Disputes Act, 1947 provides for various procedures and mechanisms for the
settlement of industrial disputes between employers and employees. These procedures and
machinery aim to facilitate the resolution of conflicts through negotiation, conciliation,
arbitration, or adjudication. Here's an overview of the procedures and machinery for
settlement under the Act:
1. Conciliation:
 Conciliation is the primary method for resolving industrial disputes under the
Act.
 The process of conciliation involves the intervention of a conciliation officer
appointed by the appropriate government authority to facilitate negotiations
between the parties and help them reach a mutually acceptable settlement.
 If the conciliation efforts are successful, a settlement agreement is signed by
both parties, which is binding and enforceable.
2. Board of Conciliation:
 In cases where conciliation by a conciliation officer is not successful, the

appropriate government authority may appoint a board of conciliation.
 The board consists of a chairman and two or more members representing the
parties to the dispute (employers and employees), as well as independent
members nominated by the government.
 The board conducts inquiries, hears representations from both sides, and
makes recommendations for the settlement of the dispute. While these
recommendations are not binding, they often serve as the basis for reaching a
settlement.
3. Court of Inquiry:
 In situations where the government considers it necessary to investigate an

industrial dispute, it may appoint a court of inquiry.
 The court of inquiry comprises a judge or an independent person with judicial
experience who conducts an inquiry into the dispute.
 The court gathers evidence, examines witnesses, and submits a report to the
government detailing its findings and recommendations.
4. Labor Court:
 If the industrial dispute remains unresolved after the intervention of

conciliation or fails to be settled based on recommendations from a board of
conciliation, the dispute may be referred to a labor court.
 The labor court is a specialized judicial body tasked with adjudicating disputes
related to industrial matters, such as terms of employment, wages, benefits,
and working conditions.
 The court hears arguments from both parties, examines evidence, and delivers
a legally binding award or judgment to settle the dispute.
5. Industrial Tribunal:
 For certain disputes of a more complex or serious nature, the government may
refer them to an industrial tribunal.
 An industrial tribunal is similar to a labor court but may have broader
jurisdiction and powers to handle more complex disputes.
 The tribunal comprises a judicial member and one or more technical members
with expertise in industrial relations or relevant fields.
6. Arbitration:
 In some cases, parties to an industrial dispute may agree to submit their

dispute to arbitration voluntarily.
 Arbitration involves appointing an independent arbitrator or panel of
arbitrators to hear the dispute, consider evidence, and render a binding
decision.
 The arbitration process may be conducted under the auspices of the Industrial
Disputes Act or through private arbitration proceedings.
These procedures and machinery for settlement under the Industrial Disputes Act, 1947
provide a structured framework for resolving disputes in the workplace, ensuring that
conflicts are addressed through peaceful means and in accordance with legal principles. By
facilitating negotiation, conciliation, and adjudication, these mechanisms contribute to the
promotion of industrial peace, stability, and harmony.

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The Industrial Disputes Act, 1947 is an important piece of legislation in India that aims to

1. Scope and Applicability:

 The Act applies to all industries, whether carried on by the government,

2. Definition of Industrial Dispute:

 The Act defines an industrial dispute as any dispute or difference between

3. Prohibition of Strikes and Lockouts during Pendency of Proceedings:

 During the pendency of conciliation proceedings and arbitration proceedings

4. Authorities for the Settlement of Industrial Disputes:

 The Act provides for the appointment of conciliation officers, boards of

5. Layoff, Retrenchment, and Closure:

6. Strikes and Lockouts:

7. Settlements and Awards:

 The Act recognizes collective bargaining as a means of resolving disputes and

 In a general sense, an industry refers to a group of businesses or

 An industrial dispute refers to a disagreement or conflict between

Need and objective of the Industrial disputes Act 1947

1. Peaceful Resolution of Disputes:

 One of the key objectives of the Industrial Disputes Act, 1947 is to

2. Protection of Workers' Rights:

 The Act seeks to safeguard the rights and interests of workers by

3. Promotion of Collective Bargaining:

4. Prevention of Unfair Labor Practices:

 The Act prohibits unfair labor practices by employers, such as

5. Settlement of Disputes through Legal Mechanisms:

 The Act establishes legal mechanisms, including conciliation boards,

6. Promotion of Industrial Peace and Productivity:

 By providing a legal framework for the prevention and resolution of

 In cases where conciliation by a conciliation officer is not successful, the

 In situations where the government considers it necessary to investigate an

 If the industrial dispute remains unresolved after the intervention of

 In some cases, parties to an industrial dispute may agree to submit their

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