Unit 2: Industrial Conflict and Disputes Resolution

1)Industrial relations (IR) Machinery in India:

Introduction:
● Labor's significance grew post-industrial revolution and rise of communism,
leading to the need for labor rights protection.
● Realization of labor rights led to the Industrial Disputes Act, 1947, aimed at
peaceful dispute resolution.
● Industrial Disputes Act, 1947: Originated from Rule 81-A of Defence of India
Rules, 1939.
● Focuses on settling industrial disputes harmoniously through various authorities.
● Authorities under the Act: Chapter III of the Act establishes authorities for dispute
resolution.Chapter IV outlines the powers and duties of these authorities.
● Authorities are categorized into adjudicatory and non-adjudicatory bodies.

Authorities Bodies: are also known as dispute settlement mechanisms. Authorities bodies
refer to the various institutions or entities established under the Industrial Disputes Act, 1947, to
facilitate the resolution of industrial disputes.

1)Adjudicatory Bodies: Labour Courts, Industrial Tribunals, National Tribunals, Voluntary

Arbitration.

2)Non- adjudicatory bodies: Work committee, conciliation officers, board conciliation, court of
inquiry, labor courts.
1)Adjudicatory Bodies: These bodies have the authority to adjudicate and make legally binding
decisions on industrial disputes.

The process involves these adjudicatory bodies resolving disputes referred to them by passing
binding awards on the parties involved. Once an award is made, it is final and binding on the
parties, and there is no provision for appeal against these awards. However, they can be
challenged through writ petitions in the High Court under Articles 226 and 227 of the Indian
Constitution or by special leave to appeal to the Supreme Court under Article 136.

1)Labour Courts: Labour Courts are specialized courts established under the Industrial
Disputes Act, 1947, to adjudicate on industrial disputes. These courts have the authority to hear
and decide matters related to disputes between employers and employees, such as unfair labor
practices, illegal dismissals, wage disputes, and disputes related to employment conditions.

Established under Section 7 of the Act, Labour Courts adjudicate on matters specified in the
Second Schedule of the Act, such as disputes regarding the legality of dismissals, layoffs,
retrenchment, and conditions of employment.

Example: If a group of employees believes that they have been unfairly dismissed from their
jobs, they can file a complaint with the Labour Court. The court will then hear both sides of the
case, examine any relevant evidence, and make a binding decision on whether the dismissals
were justified or not.

2)Industrial Tribunals: Industrial Tribunals are similar to Labour Courts but are generally
tasked with handling more complex industrial disputes. They have the authority to adjudicate on
matters referred to them by the appropriate government, including disputes related to the
interpretation of standing orders, layoffs, retrenchment, and closures of establishments.
Established under Section 7A of the Act, Industrial Tribunals have jurisdiction over matters
referred to them by the appropriate government, including disputes related to the interpretation of
standing orders, layoffs, retrenchment, and closures of establishments.

Example: If a company decides to close one of its factories, the affected workers may approach
the Industrial Tribunal to challenge the closure. The tribunal will examine the reasons for the
closure, the impact on the workers, and whether the closure is justified under the law.

3)National Tribunals: National Tribunals are established by the central government to

adjudicate on industrial disputes of national importance or those that have a significant impact on
multiple states. These tribunals have jurisdiction over matters that are beyond the scope of the
state-level Labour Courts and Industrial Tribunals.

While the Act does not specifically mention National Tribunals, they are established by the
central government as needed for adjudicating on industrial disputes of national importance or
those affecting multiple states.

Example: In a case where a major industry-wide dispute arises, such as a nationwide strike by a
particular sector of workers, the central government may refer the matter to a National Tribunal
for resolution. The tribunal would then have the authority to hear the case and make a binding
decision that applies nationwide.

4)Arbitration: Arbitration is a method of dispute resolution where disputes are submitted to a

neutral third party (arbitrator) for a binding decision. While not a traditional adjudicatory body,
arbitration is often used in industrial relations to resolve disputes outside of the court system.

The Act does not specifically address arbitration. However, arbitration is a common method of
dispute resolution used in industrial relations, often as an alternative to litigation in courts.

Example: In a situation where there is a disagreement between a labor union and an employer
over a new collective bargaining agreement, the parties may agree to submit the dispute to
arbitration. An arbitrator would then hear the arguments from both sides and issue a binding
decision on the terms of the agreement.

The process of adjudication in industrial relations involves several steps, from the filing of
a dispute to the final decision by the adjudicatory body.

1. Filing of Dispute: A dispute arises between an employer and employees or their union
regarding issues such as wages, working conditions, or disciplinary actions. For
example, a group of employees may file a dispute claiming that they have not been
paid overtime wages as per the law.
2. Referral to Adjudicatory Body: If the dispute cannot be resolved through negotiation or
mediation, either party may request that the dispute be referred to an adjudicatory body
such as a labour court, industrial tribunal, or national tribunal. For example, the
employees in the above case may request that their dispute be referred to a labour court
for resolution.
3. Preliminary Hearing: The adjudicatory body holds a preliminary hearing to understand
the nature of the dispute and determine the next steps. For example, the labour court
may schedule a preliminary hearing to review the documents submitted by both parties
and decide whether the case should proceed to a full hearing.
4. Full Hearing: If the dispute proceeds to a full hearing, both parties have the opportunity
to present their case and provide evidence to support their claims. For example, the
employees may present their timesheets as evidence of overtime work, while the
employer may present payroll records to show payment of wages.
5. Decision: After considering the evidence and arguments presented by both parties, the
adjudicatory body issues a decision. This decision is legally binding and may include
remedies such as payment of wages owed or reinstatement of unfairly dismissed
employees. For example, the labour court may order the employer to pay the
employees the overtime wages they are owed.
6. Enforcement: Once a decision is issued, both parties are expected to comply with the
decision. If necessary, the adjudicatory body or a higher court may enforce the
decision. For example, if the employer fails to pay the overtime wages as ordered, the
 labour court may issue a writ of execution to compel payment.

2)Non-Adjudicatory Bodies: These bodies focus on facilitating the resolution of disputes

through negotiation, mediation, and conciliation, rather than through legal
adjudication.Non-adjudicatory bodies in industrial relations play a crucial role in resolving
disputes and maintaining harmonious relations between employers and employees. Unlike
adjudicatory bodies, which make binding decisions, non-adjudicatory bodies focus on facilitating
communication, negotiation, and settlement between parties.

1)Works Committee: as established under Section 3 of the Industrial Disputes Act, 1947, serves
as a forum for promoting harmony and good relations between the employer and workmen in an
industrial establishment.

● The primary objective of the Works Committee is to create a platform where the
employer and workmen can discuss and resolve day-to-day working problems and other
relevant issues that impact their relationship and productivity.
● The Works Committee is composed of an equal number of representatives from the
employer's side and the workmen's side. These representatives are chosen from among
the employees engaged in the establishment. The representatives of the workmen are
selected in consultation with the registered trade union, if any, operating in the
establishment.

Functions: The Works Committee is tasked with various functions aimed at improving
relations and resolving disputes, including:

● Ascertain the grievances of the employees and suggest measures for their resolution.
● Discuss matters related to the health, safety, and welfare of the employees.
● Promote measures for securing and preserving amity and good relations between the
employer and workmen.
 ● Discuss and negotiate matters related to the efficiency of the employees and the economic
interests of both parties.
● Example: In a manufacturing plant, the Works Committee could be involved in
addressing issues such as overtime policies, working hours, safety concerns, and other
matters affecting the daily work environment. For instance, if there's a dispute regarding
the implementation of a new shift schedule, the Works Committee would discuss the
concerns of both parties and try to find a mutually acceptable solution.

2)Conciliation Officers (Section 4): Conciliation Officers are appointed by the appropriate
government to facilitate the settlement of industrial disputes between employers and workmen.
Their role is to mediate and assist the parties in reaching a mutually acceptable agreement,
thereby avoiding strikes or lockouts.

● Conciliation Officers are appointed for specified areas or industries by the appropriate
government. They are not required to have specific qualifications, but they are deemed to
be public servants and have the powers of a civil court.
● Process of Conciliation:
1. Initiation: The conciliation process is initiated when the appropriate government appoints
a Conciliation Officer to intervene in an industrial dispute. This may happen voluntarily
or upon the request of either party.
2. Investigation: The Conciliation Officer investigates the dispute by gathering information,
meeting with both parties, and understanding their grievances and demands. The Officer
may also conduct hearings and collect evidence to facilitate the resolution process.
3. Mediation: Based on the investigation, the Conciliation Officer acts as a mediator
between the parties, helping them to understand each other's perspectives and interests.
The Officer encourages dialogue and negotiation to reach a settlement.
4. Settlement: If the parties agree to a settlement, the Conciliation Officer helps them draft a
formal agreement that outlines the terms and conditions of the settlement. Once both
parties sign the agreement, it becomes legally binding.
5. Report to Government: If a settlement is reached, the Conciliation Officer submits a
report to the appropriate government confirming the settlement. If no settlement is
reached, the Officer submits a report stating the reasons for the failure of conciliation.
 ● Example: In a manufacturing company, there is a dispute between the management and
the workers regarding working hours. The workers demand a reduction in working hours,
citing health and safety concerns, while the management argues that the current working
hours are necessary for productivity. A Conciliation Officer is appointed by the
government to intervene in the dispute. The Officer meets with both parties separately to
understand their concerns and then facilitates a series of meetings between them.
Through mediation, the Officer helps the parties reach a compromise where the working
hours are reduced slightly, but the productivity targets remain achievable. The
Conciliation Officer assists in drafting a settlement agreement that includes the new
working hours and any other terms agreed upon. Both parties sign the agreement, and the
dispute is resolved amicably, avoiding any disruption to the company's operations.
● Conciliation is an effective mechanism for resolving industrial disputes by promoting
dialogue and cooperation between employers and workers. Conciliation Officers play a
crucial role in facilitating this process and ensuring that disputes are settled peacefully
and fairly.

3)Board of Conciliation (Section 5): The Board of Conciliation is constituted by the

appropriate government to handle industrial disputes of a complicated nature that require special
handling. It is an ad-hoc body formed for a specific dispute.

The Board consists of a chairman and two or four other members nominated in equal numbers by
the parties to the dispute. The members are usually experts in the field related to the dispute and
are chosen for their impartiality and expertise.

Example: In a large manufacturing company, there is a dispute regarding the implementation of a

new work schedule. The management wants to introduce a rotating shift pattern to increase
productivity, but the workers are concerned about the impact on their work-life balance. The
appropriate government constitutes a Board of Conciliation to handle the dispute. The Board
consists of a chairman, who is a retired judge with experience in labor law, and two members
nominated by the management and the workers' union, respectively.
The Board conducts hearings, gathers evidence, and facilitates negotiations between the
management and the workers. After several meetings, the Board helps the parties reach a
compromise where the rotating shift pattern is implemented with certain adjustments to address
the workers' concerns.

4)Court of Inquiry (Section 6): A Court of Inquiry is appointed by the government to inquire
into matters connected with industrial disputes and submit a report. It is formed when there are
conflicting versions of events or when the truth needs to be ascertained.

The Court consists of two or more independent members and a chairman. The members are
chosen for their impartiality and expertise in the relevant field.

Example: In a mining company, there is a dispute regarding a recent accident in one of the
mines. The workers claim that the accident was due to negligence on the part of the management,
while the management argues that it was caused by unforeseen circumstances. The government
appoints a Court of Inquiry to investigate the matter. The Court consists of a chairman, who is a
retired judge with experience in industrial safety, and two independent members with expertise in
mining operations. The Court conducts a thorough investigation, interviews witnesses, and
examines relevant documents. After careful consideration, the Court submits a report to the
government, outlining its findings and recommendations.

5)Labour Courts (Section 7): Labour Courts are constituted by the appropriate government to
adjudicate industrial disputes specified in the Second Schedule of the Act. They are
quasi-judicial bodies that resolve disputes through legal proceedings.

A Labour Court consists of a presiding officer appointed by the government. The presiding
officer is usually a former judge of a High Court or a District Judge with experience in labor law.

Example: In a textile mill, there is a dispute regarding the non-payment of bonus to the workers.
The workers claim that they are entitled to a bonus as per their employment agreement, but the
management disagrees, citing financial constraints. The appropriate government refers the
dispute to a Labour Court for adjudication. The Labour Court conducts hearings, examines
evidence, and hears arguments from both parties. After considering all the facts, the Labour
Court issues a judgment, either directing the management to pay the bonus or ruling in favor of
the management based on the evidence presented.

Non-adjudicatory bodies in industrial relations play a crucial role in resolving disputes and
promoting harmonious relations between employers and employees. The process followed by
these bodies typically involves the following steps:

1. Initiation of Conciliation: The process begins when an industrial dispute arises between
the employer and employees. Either party or both parties can approach the conciliation
officer or the appropriate government to initiate conciliation proceedings.
2. Appointment of Conciliator: The appropriate government appoints a conciliator, who is
a neutral third party, to facilitate the resolution of the dispute. The conciliator may be a
government official or a person with expertise in labor relations.
3. Conduct of Conciliation Proceedings: The conciliator meets with the parties separately
or together to understand their positions and facilitate negotiations. The conciliator's
role is to help the parties reach a mutually acceptable settlement.
4. Settlement Agreement: If the parties reach a settlement through conciliation, a
settlement agreement is drawn up. The agreement outlines the terms of the settlement,
including any changes to be made in the workplace or to work conditions.
5. Submission of Settlement: The settlement agreement is submitted to the appropriate
government authority for approval. Once approved, the settlement becomes binding on
both parties.
6. Follow-Up: The conciliator may follow up with the parties to ensure that the terms of
the settlement are implemented. This may involve monitoring the implementation of
changes and addressing any issues that arise.
7. Closure of Proceedings: Once the settlement is implemented and the dispute is
resolved, the conciliation proceedings are formally closed.

It's important to note that the process may vary slightly depending on the specific laws and
regulations applicable in a particular jurisdiction. However, the general principles of
conciliation and non-adjudicatory dispute resolution remain consistent in promoting peaceful
resolution of disputes in industrial relations.

2)Provisions under the disputes act:

1. Definitions of Industrial Disputes (Section 2): The Act defines industrial disputes as
disputes or differences between employers and employees, or between employers and
workmen, or between workmen and workmen, which are connected with the employment
or non-employment, or the terms of employment, or with the conditions of labor.
2. Procedures for Conciliation (Sections 4-12): The Act provides for the appointment of
Conciliation Officers by the appropriate government to mediate and promote settlements
of industrial disputes. Conciliation is the first step in resolving disputes, and the Act
outlines the procedures for conciliation, including the powers and duties of Conciliation
Officers.
3. Procedures for Arbitration (Sections 10A-10C): The Act allows for disputes to be
referred to arbitration with the consent of both parties. Arbitration is a voluntary process
where an arbitrator is appointed to hear the dispute and make a decision, which is binding
on both parties.
4. Procedures for Adjudication (Sections 7, 7A, 7B, 7C, 7D, 7E): If conciliation and
arbitration fail, the Act provides for the adjudication of disputes by Labour Courts,
Industrial Tribunals, or National Tribunals, depending on the nature and complexity of
the dispute. These adjudicatory bodies have the power to hear and decide disputes and
their decisions are legally binding.
5. Penalties (Sections 23-26): The Act contains provisions for penalties for various offenses,
such as illegal strikes and lockouts, and violation of settlement or award. Penalties may
include fines or imprisonment.
6. Authorities (Chapter III): The Act establishes various authorities, including Conciliation
Officers, Boards of Conciliation, Courts of Inquiry, Labour Courts, Industrial Tribunals,
and National Tribunals, to facilitate the resolution of disputes. These authorities have
 specific powers and duties under the Act to investigate disputes, conduct inquiries, and
make decisions to resolve disputes.

3)Authorities under the Act:

1. Conciliation Officers (Section 4): Conciliation Officers are appointed by the appropriate
government to promote settlement of disputes through conciliation. Their role is to
mediate between the parties and facilitate a mutually acceptable solution. They have the
power to investigate disputes, examine witnesses, and submit a report to the government.
2. Boards of Conciliation (Section 5): Boards of Conciliation are tripartite bodies consisting
of representatives from the government, employers, and employees. They are appointed
to investigate and settle disputes that have not been resolved by a Conciliation Officer.
Their recommendations are non-binding but often serve as a basis for settlement.
3. Courts of Inquiry (Section 6): Courts of Inquiry are appointed by the government to
inquire into matters related to an industrial dispute. They consist of one or more
independent persons and have the power to summon witnesses and examine them under
oath. Their findings are submitted to the government for further action.
4. Labour Courts (Section 7): Labour Courts are quasi-judicial bodies established to
adjudicate disputes regarding the terms of employment or the conditions of labor. They
have the power to hear and decide disputes, and their decisions are legally binding.
5. Industrial Tribunals (Section 7A): Industrial Tribunals are similar to Labour Courts but
are appointed to adjudicate disputes of a more complex nature that cannot be resolved by
a Labour Court. They have a broader jurisdiction, and their decisions are legally binding.
6. National Tribunals (Section 7B): National Tribunals are established to adjudicate
industrial disputes of national importance or those that affect more than one state. They
have a similar composition to Industrial Tribunals but have a wider jurisdiction.
These authorities play a crucial role in the resolution of industrial disputes by providing
mechanisms for investigation, inquiry, and adjudication. They help in maintaining industrial
peace and harmony by ensuring that disputes are resolved fairly and expeditiously.

3)Reference of disputes to boards:

The Industrial Disputes Act, 1947, provides for the resolution of industrial disputes through a
process of conciliation, arbitration, and adjudication. When a dispute arises between employers
and employees, and initial efforts at conciliation by Conciliation Officers are unsuccessful, the
appropriate government may refer the dispute to a Board of Conciliation for settlement.

A Board of Conciliation is a tripartite body consisting of a chairman and an equal number of

representatives from the employer and employee sides. The main objective of the Board is to
investigate the dispute, hear both parties, and make recommendations for a settlement. The
recommendations are based on the facts of the case, relevant laws, and the interests of both
parties.

The process of reference to a Board of Conciliation starts with the government issuing a
notification specifying the dispute and referring it to the Board. The Board then conducts its
proceedings, which may include hearings, examinations of witnesses, and gathering of evidence.
The Board may also seek the assistance of experts or consult relevant documents to arrive at a
fair and just recommendation.

Once the Board has completed its inquiry, it submits its recommendations to the government.
The government may then take further action based on the recommendations. This could include
encouraging the parties to accept the recommendations, referring the dispute to arbitration, or
referring it to a Court of Inquiry or directly to a Labour Court, Industrial Tribunal, or National
Tribunal for adjudication.

The recommendations of the Board of Conciliation are not binding on the parties. However, they
often serve as a basis for settlement negotiations between the parties. The process of reference to
a Board of Conciliation is aimed at promoting dialogue, understanding, and cooperation between
employers and employees, and ultimately, at achieving a peaceful resolution of industrial
disputes.

Example: A textile factory is facing a dispute with its workers regarding overtime wages. The
workers claim that they are not being paid the appropriate overtime rates, as mandated by the
law, for the extra hours they work. The management, on the other hand, argues that they are
following the agreed-upon wage structure and that the workers' demands are unjustified.

1. Initial Conciliation Efforts: A Conciliation Officer is appointed by the government to

mediate between the factory management and the workers' union. Despite several rounds
of negotiations, the parties are unable to reach a settlement.
2. Reference to a Board of Conciliation: As conciliation efforts fail, the appropriate
government issues a notification referring the dispute to a Board of Conciliation. The
Board is composed of a chairman and members representing both the factory
management and the workers' union.
3. Investigation and Recommendations: The Board conducts hearings and investigations
into the dispute. It examines the wage structure, work records, and relevant documents to
understand the nature of the dispute. After thorough investigation, the Board recommends
that the factory management revise its wage structure to ensure that workers are paid the
appropriate overtime rates.
4. Government Action: The Board submits its recommendations to the government. The
government encourages the factory management to accept the recommendations and
revise its wage structure accordingly. The management agrees to the recommendations,
and the dispute is settled amicably.

In this example, the reference of the dispute to a Board of Conciliation helped in resolving the
issue of overtime wages between the factory management and the workers' union. The Board's
recommendations served as a basis for negotiation and ultimately led to a fair and mutually
acceptable settlement.

4)Courts or tribunals:Courts and tribunals play a crucial role in the resolution of industrial
disputes under the Industrial Disputes Act, 1947.
 1. Labour Courts: Labour Courts are established under the Industrial Disputes Act, 1947,
and are quasi-judicial bodies. They have the authority to adjudicate disputes related to the
terms of employment or the conditions of labor. Labour Courts are typically presided
over by a judge with experience in labor law. Their decisions are legally binding on both
parties and can only be challenged through appeals to higher courts.
2. Industrial Tribunals: Industrial Tribunals are also established under the Industrial
Disputes Act, 1947, and are similar to Labour Courts. However, Industrial Tribunals are
appointed to adjudicate disputes of a more complex nature that cannot be resolved by a
Labour Court. They have a broader jurisdiction and can hear disputes involving multiple
parties or issues. Like Labour Courts, their decisions are legally binding and can be
appealed to higher courts.
3. National Tribunals: National Tribunals are established under the Industrial Disputes Act,
1947, to adjudicate industrial disputes of national importance or those that affect more
than one state. They have a similar composition to Industrial Tribunals but have a wider
jurisdiction. National Tribunals are typically appointed for specific cases or issues and
their decisions are also legally binding.

The main difference between Labour Courts and Industrial Tribunals lies in their jurisdiction and
complexity of cases they handle. Labour Courts generally handle disputes of a simpler nature,
while Industrial Tribunals deal with more complex and contentious issues. National Tribunals, on
the other hand, are reserved for disputes of national importance or those with wide-ranging
implications.

Overall, Labour Courts, Industrial Tribunals, and National Tribunals play a crucial role in the
resolution of industrial disputes in India, ensuring that disputes are resolved fairly and
expeditiously to maintain industrial peace and harmony.

5)Procedures, Powers and duties of authorities:

The procedures, powers, and duties of authorities under the Industrial Disputes Act, 1947, vary
depending on the specific authority. Here's an overview along with examples:

1. Conciliation Officers (Section 4):

 ● Procedure: Conciliation Officers are appointed by the appropriate government to
mediate and promote settlements of industrial disputes. They have the authority to
investigate disputes, examine witnesses, and submit a report to the government.
● Powers and Duties: Their main duty is to mediate between the parties and
facilitate a mutually acceptable solution.
● Example: A Conciliation Officer is appointed to resolve a dispute between a
company and its workers regarding wage increases. The officer conducts
meetings, listens to both sides, and proposes a compromise that is acceptable to
both parties.
2. Boards of Conciliation (Section 5):
● Procedure: Boards of Conciliation are appointed by the government to investigate
and settle disputes that have not been resolved by a Conciliation Officer.
● Powers and Duties: They have the authority to inquire into the dispute, hear both
parties, and make recommendations for a settlement.
● Example: A Board of Conciliation is appointed to resolve a dispute between a
factory management and its workers regarding working conditions. The Board
conducts hearings, gathers evidence, and recommends changes to the working
conditions to ensure the safety and well-being of the workers.
3. Courts of Inquiry (Section 6):
● Procedure: Courts of Inquiry are appointed by the government to inquire into
matters related to an industrial dispute.
● Powers and Duties: They have the power to summon witnesses, examine them
under oath, and submit a report to the government.
● Example: A Court of Inquiry is appointed to investigate a dispute between a
company and its workers regarding allegations of unfair labor practices. The
Court gathers evidence, interviews witnesses, and submits a report recommending
actions to address the allegations.
4. Labour Courts (Section 7):
● Procedure: Labour Courts are quasi-judicial bodies established to adjudicate
disputes regarding the terms of employment or the conditions of labor.
 ● Powers and Duties: They have the power to hear and decide disputes, and their
decisions are legally binding.
● Example: A Labour Court is called upon to adjudicate a dispute between a
company and its workers regarding the implementation of a new shift schedule.
The Court hears arguments from both sides, reviews relevant documents, and
issues a ruling on the matter.
5. Industrial Tribunals (Section 7A):
● Procedure: Industrial Tribunals are similar to Labour Courts but are appointed to
adjudicate disputes of a more complex nature.
● Powers and Duties: They have a broader jurisdiction and their decisions are
legally binding.
● Example: An Industrial Tribunal is appointed to resolve a dispute between a
group of workers and a company regarding the closure of a factory. The Tribunal
hears arguments from both sides, examines the reasons for the closure, and issues
a ruling on the legality of the closure.
6. National Tribunals (Section 7B):
● Procedure: National Tribunals are established to adjudicate industrial disputes of
national importance or those that affect more than one state.
● Powers and Duties: They have a similar composition to Industrial Tribunals but
have a wider jurisdiction.
● Example: A National Tribunal is appointed to resolve a dispute between a major
airline and its pilots regarding pay and working conditions. The Tribunal
examines the airline's financial records, analyzes industry standards, and issues a
ruling that sets a precedent for the entire aviation industry.

These examples illustrate how each authority under the Industrial Disputes Act, 1947, follows
specific procedures, exercises certain powers, and fulfills distinct duties to resolve industrial
disputes effectively.

5) IR Process and certain important aspects of Industrial dispute:

1)Strikes: occurs when a group of employees collectively stop working to protest against their
employer regarding issues such as wages, working conditions, or other grievances.

A strike is a collective action by employees to stop working in order to protest against their
employer regarding issues such as wages, working conditions, or other grievances. According to
Section 2(q) of the Industrial Disputes Act, 1947, a strike is defined as "a cessation of work by a
body of persons employed in any industry acting in combination or a concerted 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."

Example: Employees of a textile mill go on strike to demand an increase in wages. Despite

negotiations, the management fails to meet their demands, leading to a strike. The strike disrupts
production and puts pressure on the management to address the employees' concerns.

2)Lockouts:A lockout happens when an employer temporarily closes the workplace or suspends
work to prevent employees from working, often in response to a labor dispute.

A lockout occurs when an employer temporarily closes a workplace or suspends work, usually in
response to a labor dispute. Section 2(1) of the Industrial Disputes Act, 1947, defines lockout as
"the temporary closing of 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.

Example: The management of a manufacturing plant announces a lockout in response to

employees' demands for better working conditions. The lockout prevents employees from
entering the premises and performing their duties until the dispute is resolved.

Penalties for Illegal Strikes and Lockouts: Example: In a manufacturing company, the
employees go on an illegal strike without following the procedures laid down in the Industrial
Disputes Act. The management files a complaint, and the employees involved are fined or
sentenced to imprisonment as per the Act.

3)Layoff :Layoff occurs when an employer temporarily suspends or terminates the employment
of workers due to reasons such as lack of work or financial constraints.
Layoff is the temporary suspension or termination of employment by the employer due to
reasons such as lack of work, financial constraints, or other reasons. Layoff is defined under
Section 2(kkk) of the Industrial Disputes Act, 1947, as "the failure, refusal, or the inability of an
employer on account of the shortage of coal, power, or raw materials or the accumulation of
stocks or the breakdown of machinery or natural calamity or for any other unconnected reason to
give employment to a workman whose name is borne on the muster rolls of his industrial
establishment and who has not been retrenched

Example: A construction company lays off a group of workers due to a slowdown in

construction projects. The laid-off workers are informed that they will be called back once the
company secures new projects and work resumes.

Prohibition of Layoff: Example: A power plant faces a shortage of coal and decides to lay off
some workers. However, since the layoff is not due to a shortage of power, natural calamity, or
other specified reasons, the employer must seek permission from the appropriate government, as
required by the Act.

4)Retrenchment: is the permanent termination of employment by the employer for reasons such
as closure of business, technological changes, or financial difficulties.

Retrenchment is the permanent termination of employment by the employer for reasons such as
closure of business, technological changes, or financial difficulties. Section 2(oo) of the
Industrial Disputes Act, 1947, defines retrenchment as "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.
Example: A retail chain decides to retrench a group of employees due to declining sales and the
need to restructure its operations. The retrenched employees are provided with severance
packages and assistance in finding new employment.

Conditions Precedent to Retrenchment: Example: An automobile company decides to retrench a

group of employees due to a decrease in demand for its products. The company gives one
month's notice to the employees or pays them in lieu of notice, as required by the Act, and
provides retrenchment compensation based on the employees' years of service.
Procedure of Retrenchment: Example: In a textile factory, the management decides to retrench
some workers due to a decline in orders. The management follows the last-in-first-out principle,
retrenching the workers who were the last to be employed in their respective categories, unless
there are valid reasons to retrench other workers.

Example: In a manufacturing plant, workers demand an increase in wages due to rising inflation.
After failed negotiations with the management, the workers decide to go on strike. They follow
the procedures outlined in the Industrial Disputes Act, giving the employer notice of the strike.
The strike leads to a temporary shutdown of the plant, affecting production and causing financial
losses for the company. In response, the management declares a lockout, citing the need to
protect the company's interests during the strike. The lockout further escalates the conflict
between the workers and the management, prolonging the dispute. As the strike and lockout
continue, the company faces a financial crisis, leading to layoffs of some workers due to lack of
work. The laid-off workers are informed that they will be called back once the situation
improves. However, as the financial situation worsens, the company decides to retrench a group
of workers to cut costs and stay afloat. The retrenched workers are provided with retrenchment
compensation as per the provisions of the Industrial Disputes Act. In this example, we see how
strikes, lockouts, layoffs, and retrenchments are interconnected in the context of industrial
disputes and how they impact both employees and employers

Strikes, Lockouts, Layoffs, and Retrenchments

Strike and Lockout Definitions: A strike is when employees collectively stop working as a
form of protest or to enforce demands. A lockout is when an employer temporarily closes a
workplace or suspends work to deal with a labor dispute.

Procedures for Strikes and Lockouts:

● Strikes: Notice must be given to the employer six weeks before striking, and not within
fourteen days of giving notice, before the expiry of the strike date, or during
conciliation proceedings.
 ● Lockouts: Employers must give notice six weeks before locking out, not within
fourteen days of giving notice, before the expiry of the lockout date, or during
conciliation proceedings.

Legal Strikes and Lockouts: Strikes or lockouts are illegal if procedures are not followed or if
there is disobedience of relevant sections.

Penalties for Illegal Strikes and Lockouts:

● Workmen: Imprisonment for up to one month, a fine up to fifty rupees, or both.

● Employers: Imprisonment for up to one month, a fine up to one thousand rupees, or
both.

Layoff and Retrenchment Definitions:

● Layoff: Employer's failure to give employment due to various reasons specified.

● Retrenchment: Termination of a workman's service for any reason other than
punishment or disciplinary action.

Essentials of Layoff:

● Employer's failure, refusal, or inability to provide employment.

● Reasons like shortage of resources, accumulation of stocks, etc.
● Workman's name on the muster rolls.
● Workman not being retrenched.

Essentials of Retrenchment:

● Termination of service by the employer for reasons other than punishment.

● Exceptions include voluntary retirement, retirement at the superannuation age, and
termination due to continued ill-health.
Prohibition of Layoff and Retrenchment:

● Applies to establishments with fewer than fifty workers, seasonal establishments, and
establishments specified under Chapter V-B.
● Layoff and retrenchment compensation do not apply in these cases.

Continuous Service for Layoff Compensation:

● A workman is in continuous service if there is no interruption due to authorized leave,

sickness, etc.
● Even if a workman has not completed one year of continuous service, he is deemed to
have done so if he meets certain criteria.

Compensation for Layoff: A workman laid off is entitled to compensation equivalent to 50%
of total basic wages and dearness allowance for the period of layoff, subject to conditions.

Conditions Precedent to Retrenchment:

● One month's notice or salary in lieu thereof.

● Payment of retrenchment compensation.
● Notice served to the appropriate government.

Procedure of Retrenchment:

● One month's notice or salary in lieu thereof.

● Compensation equivalent to fifteen days average pay for every completed year of
service.
● Notice served to the appropriate government.

These provisions aim to regulate labor practices, ensuring fair treatment of workers and
peaceful resolution of industrial disputes.
6) Unfair labor practices, penalties:

Unfair labor practices (ULPs) are actions taken by either employers or trade unions that violate
the rights of workers to organize, engage in collective bargaining, or participate in other
concerted activities. These practices are detrimental to the establishment of harmonious
industrial relations and are prohibited under the Industrial Disputes Act, 1947.

Unfair Labour Practices by Employers and Trade Unions of Employers

1. Interference with Right to Organize: Employers cannot interfere with, restrain, or coerce
workers in their right to organize, join, or assist a trade union. This includes threatening
workers with dismissal if they join a union, or threatening a lockout if a union is
organized. For example, threatening to fire employees who participate in union activities.
2. Domination of Trade Unions: Employers should not dominate, interfere with, or support
any specific trade union financially or otherwise. This includes showing favoritism
towards a particular union or organizing a union that is controlled by the employer. For
instance, providing financial support to a trade union to influence its decisions.
3. Establishment of Employer-Sponsored Trade Unions: Employers should not establish
trade unions that they control or sponsor. This practice undermines the independence of
the union. For example, creating a union and appointing management-friendly individuals
as its leaders.
4. Discrimination Against Union Members: Employers should not discriminate against
workers based on their union activities. This includes punishing workers for encouraging
others to join a union, or refusing to promote workers because of their union
involvement. For instance, demoting an employee for leading a union organizing effort.
5. Unfair Dismissal: Employers should not dismiss workers unfairly. This includes
dismissing workers as an act of victimization, without just cause, or in violation of
principles of natural justice. For example, firing an employee for filing a complaint
against the employer.
6. Abolition of Regular Work to Break a Strike: Employers should not abolish regular work
done by employees and give such work to contractors as a way to break a strike. This
 practice undermines the job security of the striking workers. For instance, outsourcing
regular work to contractors during a strike.
7. Malafide Transfer of Workers: Employers should not transfer workers maliciously from
one place to another under the guise of following management policy. This practice can
be used to target union activists or troublemakers. For example, transferring a union
leader to a remote location to disrupt union activities.
8. Imposing Good Conduct Bond on Striking Workers: Employers should not require
individual workers who are on a legal strike to sign a good conduct bond as a condition to
resume work. This requirement can be used to intimidate workers and discourage them
from participating in strikes.
9. Favoritism or Partiality: Employers should not show favoritism or partiality towards a
particular group of workers regardless of merit. This can create divisions among workers
and undermine unity. For example, giving preferential treatment to workers who are not
involved in union activities.
10. Employment of Workers as Casuals or Temporaries to Deprive Them of Permanent
Status: Employers should not employ workers as casual or temporary workers for an
extended period with the intention of depriving them of the status and privileges of
permanent workers. This practice undermines job security and benefits. For example,
hiring workers as casuals for several years without offering them permanent positions.
11. Retaliation Against Workers Filing Charges or Testifying in Industrial Disputes:
Employers should not retaliate against workers who file charges or testify against the
employer in any industrial dispute enquiry or proceeding. This includes dismissing or
discriminating against such workers. For example, firing an employee for providing
testimony against the employer in a labour dispute hearing.
12. Recruitment of Workers During a Strike: Employers should not recruit new workers
during a strike that is not deemed illegal. This practice undermines the effectiveness of
the strike and can prolong labour disputes. For example, hiring replacement workers
during a strike to keep operations running.
13. Failure to Implement Awards, Settlements, or Agreements: Employers should not fail to
implement awards, settlements, or agreements reached through collective bargaining.
 This includes not abiding by the terms of a negotiated agreement. For example, refusing
to pay wage increases agreed upon in a collective bargaining agreement.
14. Acts of Force or Violence: Employers should not engage in acts of force or violence
against workers or their property. This includes physical harm or threats of harm. For
example, using security personnel to intimidate striking workers.
15. Refusal to Bargain Collectively in Good Faith: Employers should not refuse to bargain
collectively in good faith with recognized trade unions. This includes not engaging in
meaningful negotiations or bargaining tactics aimed at delaying or obstructing the
bargaining process.
16. Proposing or Continuing an Illegal Lockout: Employers should not propose or continue a
lockout that is deemed illegal under the law. This includes lockouts that are used as a
retaliatory measure or without valid reasons. For example, locking out workers as a
response to union activities.

Unfair Labour Practices by Workmen and Trade Unions of Workmen

1. Instigating Illegal Strikes: Workmen and trade unions should not advise, support, or
instigate any strike that is deemed illegal under the law. This includes strikes without
proper legal authorization. For example, calling for a strike without following the legal
procedures.
2. Coercion in Right to Self-Organization: Workmen and trade unions should not coerce
other workers in their right to self-organization or to join or refrain from joining a trade
union. This includes using force or threats of violence. For example, physically
preventing non-striking workers from entering the workplace.
3. Refusal to Bargain Collectively in Good Faith: Recognized trade unions should not refuse
to bargain collectively in good faith with the employer. This includes not engaging in
meaningful negotiations or using bargaining tactics aimed at delaying or obstructing the
bargaining process.
4. Coercive Activities Against Certification of Bargaining Representative: Workmen and
trade unions should not engage in coercive activities against the certification of a
bargaining representative. This includes using force or threats to influence the selection
of a bargaining representative.
 5. Coercive Actions Such as "Go Slow" or "Gherao": Workmen and trade unions should not
stage, encourage, or instigate coercive actions such as willful "go slow", squatting on
work premises after hours, or "gherao" of managerial or other staff. These actions can
disrupt operations and intimidate management.
6. Demonstrations at Residences of Employers or Managerial Staff: Workmen and trade
unions should not stage demonstrations at the residences of employers or managerial staff
members. This can be seen as intimidation and invasion of privacy.
7. Wilful Damage to Employer's Property: Workmen and trade unions should not incite or
indulge in wilful damage to the employer's property connected with the industry. This
includes vandalism or destruction of property.
8. Force or Violence Against Workmen: Workmen and trade unions should not engage in
acts of force or violence or threats of intimidation against any workman with the intention
of preventing him from attending work. This includes physically preventing other
workers from working.

These practices are considered unfair labour practices under the Industrial Disputes Act, 1947,
and are prohibited to maintain industrial peace and protect the rights of both employers and
workers.

7)The industrial relations code (2020):

The Industrial Relations Code, 2020, is a comprehensive legislation that seeks to consolidate and
amend the laws relating to trade unions, conditions of employment in industrial establishments,
and investigation and settlement of industrial disputes. The Code aims to simplify and modernize
the industrial relations framework in India.

1. Consolidation of Laws: The Code consolidates three existing central labor laws: the
Trade Unions Act, 1926, the Industrial Employment (Standing Orders) Act, 1946, and the
Industrial Disputes Act, 1947.
2. Definition of Terms: The Code provides clear definitions for various terms used in
industrial relations, such as "industrial dispute," "employer," "workman," and "trade
union."
3. Recognition of Trade Unions: The Code lays down the criteria and procedure for the
recognition of trade unions in industrial establishments. It also provides for the
derecognition of trade unions under certain circumstances.Example: In a manufacturing
company with 500 employees, two trade unions are vying for recognition. As per the
Code, the trade union with the support of at least 30% of the total employees can apply
for recognition. The employer is required to recognize the union if it meets the criteria
laid down in the Code.
4. Standing Orders: The Code mandates that every industrial establishment employing 300
or more workers must have standing orders regulating the conditions of employment. It
also specifies the procedure for certifying and amending standing orders.Example: A
large textile factory employing 800 workers decides to draft standing orders to regulate
the conditions of employment. The management, in consultation with the workers'
representatives, drafts the standing orders specifying working hours, leave policies,
grievance redressal mechanisms, etc., as per the requirements of the Code.
5. Settlement of Industrial Disputes: The Code provides for the constitution of Grievance
Redressal Committees in industrial establishments to address individual grievances. It
also establishes Industrial Tribunals and National Industrial Tribunals for the adjudication
of industrial disputes.Example: A large textile factory employing 800 workers decides to
draft standing orders to regulate the conditions of employment. The management, in
consultation with the workers' representatives, drafts the standing orders specifying
working hours, leave policies, grievance redressal mechanisms, etc., as per the
requirements of the Code.
6. Strikes and Lockouts: The Code lays down provisions regarding the legality of strikes
and lockouts, including the conditions under which they can be declared illegal. It also
prohibits the financial aid to illegal strikes and lockouts.Example: Workers in a factory go
on strike demanding better working conditions. The strike is conducted in accordance
with the provisions of the Code, including the mandatory notice period. However, if the
strike is declared illegal due to non-compliance with the Code's requirements, the
workers may be subject to penalties.
7. Penalties: The Code specifies penalties for contravention of its provisions, including fines
and imprisonment for certain offenses.Example: An employer is found guilty of unfair
 labor practices such as dismissing workers for union activities. As per the Code, the
employer may be liable for penalties, which could include fines or imprisonment, as
prescribed under the relevant sections of the Code.

8. Advisory Boards: The Code provides for the constitution of Central and State Advisory
Boards to advise the government on matters related to industrial relations.Example: The
government forms a Central Advisory Board comprising representatives from trade
unions, employers' associations, and the government. The board advises the government
on matters related to industrial relations, helping to create a conducive environment for
dialogue and resolution of issues.
9. Other Provisions: The Code includes provisions related to layoff, retrenchment, closure
of establishments, and related matters.

The Industrial Relations Code, 2020, aims to promote harmonious industrial relations, enhance
the ease of doing business, and ensure the welfare and rights of workers and employers in India's
industrial sector.