Industrial Disputes

Act, 1947

Dr. Subir Bikas Mitra

SESSION-14
 Section 9A. Notice of Change
 No employer, who proposes to effect any change in the conditions of service applicable
to any workman in respect of any matter specified in the Fourth Schedule, shall effect
such change,
a) without giving to the workmen likely to be affected by such change a notice in the
prescribed manner of the nature of the change proposed to be affected; or
b) within twenty-one days of giving such notice:
Provided that no notice shall be required for effecting any such change-
c) where the change is affected in pursuance of any [settlement or award]; or
d) where the workmen likely to be affected by the change are persons to whom the
Fundamental and Supplementary Rules, Civil Services (Classification, Control and
Appeal) Rules, Civil Services (Temporary Service) Rules, Revised Leave Rules, Civil
Service Regulations, Civilians in Defence Services (Classification, Control and Appeal)
Rules or the Indian Railway Establishment Code or any other rules or regulations that may
be notified in this behalf by the appropriate Government in the Official Gazette, apply.
Power of Government to exempt [Section 9B]
 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.
 THE FOURTH SCHEDULE : Conditions
of Service for Change of which notice is to
be given

Wages, including the period and mode of payment;

1.Contribution paid, or payable, by the employer to any
provident fund or pension fund or for the benefit of
the workmen under any law for the time being in force;
2.Compensatory and other allowances;
3.Hours of work and rest intervals;
4.Leave with wages and holidays;
5.Starting, alteration or discontinuance of shift working
otherwise than in accordance with standing orders;
Continued…

6. Classification by grades;
7. Withdrawal of any customary concession or privilege or
change in usage.
8. Introduction of new rules of discipline, or alteration of
existing rules, except in so far as they are provided in standing
orders;
9. Rationalization, standardization or improvement of plant or
technique which is likely to lead to retrenchment of workmen;
10. Any increase or reduction (other than casual) in the number
of persons employed or to be employed in any occupation or
process or department or shift, 167[not occasioned by
circumstances over which the employer has no control.
Setting up of Grievance Redressal Machinery
[Section 9C]
1) The employer in relation to every industrial establishment in
which fifty or more workmen are employed or have been
employed on any day in the preceding twelve months, shall
provide for, a Grievance Settlement Authority for the
settlement of industrial disputes connected with an
individual workman employed in the establishment.
2) Where an industrial dispute connected with an individual
workman arises in an establishment referred to in sub-section
(1), a workman or any trade union of workmen of which such
workman is a member, refer such dispute to the Grievance
Settlement Authority for settlement.
Continued…
3) The Grievance Settlement Authority shall follow
such procedure and complete its proceedings
within a prescribed period.
4) An appeal for a dispute (referred to the Grievance
Settlement Authority)shall be made to the employer
and the employer shall within one month from the
date of receipt of such appeal, dispose off the same
and send a copy of his decision to the workman
concerned.
Reference of disputes to Boards, Courts or Tribunals
[Section 10]
A. Reference of disputes to various Authorities
 A matter is referred to the Conciliation Board for promoting
the settlement of the disputes. The Conciliation Board is to
promote settlement and not to adjudicate.
 But if the purpose of reference of the matter is investigatory
instead of conciliatory or adjudicatory, it should be referred to
Court of Inquiry. Again, if the matter is related to the Second
Schedule or Third Schedule, it is referred to the Labour
court.
Continued…
 On the other hand, any matter of the industrial
disputes which may relate to the Second Schedule or
Third Schedule may refer to the Industrial
Tribunal.
 Where the disputes relate to a public utility service
and a notice of the same is given, it becomes
mandatory of the Appropriate Government or the
Central Government to refer the matter for
adjudication. But the power of the Appropriate
Government to make a reference is discretionary
and it is open to judicial review.
Voluntary reference of disputes to Arbitration
[Section 10A]
The settlement of industrial disputes may be done through
voluntary reference under Section 10- A.
i. When an industrial dispute is not referred to
Conciliation Board, Labour Court, and Court of Inquiry,
Industrial Tribunal or National Tribunal for
adjudication, the employer and the workmen through a
written agreement forward the matter for arbitration
specifying the names of the arbitrator.
ii. The arbitration agreement should be made in prescribed
form and should be signed by the parties.
Continued…
iii. Within one month from the receipt of the
arbitration agreement which should be forwarded
to Appropriate Government and the Conciliation
officer, a copy of the same has to be published in
the official Gazette.
iv. The arbitrator(s) shall have to investigate the
disputes and submit to the Appropriate Government
the award.
v. The award should be signed by the arbitrator(s).
vi. The strike or lock-out in connection with the
disputes should be prohibited by an order of the
Appropriate Government
 Powers of Labour Courts, Tribunals and National
Tribunals to give appropriate relief in case of discharge
or dismissal of workmen- [Section 11A]
 Labour Court/Industrial Tribunal can modify the punishment of
dismissal or discharge of workmen and give appropriate relief
including reinstatement.
 Where an industrial dispute relating to the discharge or
dismissal of a workman has been referred to a Labor Court,
Tribunal or National Tribunal for adjudication and, in the course
of the adjudication proceedings, the Labor 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
reinstatement of the workman on such terms and conditions.
Payment of full wages to workman pending
proceedings in higher courts [Section 17B]
 Employer to pay last drawn wages to reinstated workman when
proceedings challenging the award of his reinstatement are
pending in the higher Courts.
 Provided that where it is proved to the satisfaction of the High
Court or the Supreme Court that such workman had been
employed and had been receiving adequate remuneration
during any such period or part thereof and the court orders that
no wages shall be payable under this section for such period or
part, as the case may be.
 Persons on whom Settlements
and Awards are Binding [Section 18]
1) A settlement arrived at by agreement between the employer and workman.
2) An arbitration award which has become enforceable shall be binding on the
parties to the agreement who referred the dispute to arbitration.]
3) A settlement arrived at in the course of conciliation proceedings or an
arbitration award in a case where a notification has been issued under sub-
section (3A) of section 10A] or an award of a Labor Court, Tribunal or
National Tribunal] which has become enforceable shall be binding on-
a. all parties to the industrial dispute;
b. all other parties summoned to appear in the proceedings as parties to the dispute;
c. where a party referred to in clause (a) or clause (b) is an employer, his heirs,
successors or assigns in respect of the establishment to which the dispute relates;
d. where a party referred to in clause (a) or clause (b) is composed of workmen, all
persons who were employed in the establishment or part of the establishment.
Period of operation of Settlements and
Awards [Section 19]
 A settlement shall come into operation on such
date as is agreed upon by the parties to
dispute or a period as agreed by the parties.
 If no such period was fixed the settlement
shall come into operation within the six
months form the date of signing of
settlement.
 An award will remain in operation for one
year after its enforcement.
Prohibition of strikes and lock-outs [Section 22]
 Section 22(1) states the for going on legal strike workmen should give a
notice to the employer, within six weeks before going one strike. There
must be no strike within 14 days of giving such notice. This means a
notice should be given at least 14 days before the date of strike.
 Section 22(2) states that same time period should be applicable in the
case of lockouts.
 Strike is used as weapon to pressurize the employer while lockout is
used by employer as weapon to pressurize employees.
 No strike or lockout can be done during the pendency of any conciliation
proceedings before a conciliation officer and seven days after the
conclusion of such proceedings.
 General prohibition has been discussed under section 23 which says,
during pendency before any board, tribunal or court no strike or lock
out can be done as discussed above.
 General prohibition of Strikes and
Lock-outs [Section 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 seven
days after the conclusion of such proceedings;
b. during the pendency of proceedings before [a Labour Court, Tribunal or
National Tribunal] and two months after the conclusion of such proceedings;
c. during the pendency of arbitration proceedings before an arbitrator and two
months after the conclusion of such proceedings, where a notification has
been issued under sub-section (3A) of section 10A; or
d. 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.
 Illegal strikes and lock-
outs [Section 24]
Any strike or lockout shall be considered as illegal if;
i. If violate section 22 and 23
ii. Where a strike or lock-out in pursuance of an industrial
dispute has already commenced and is in
iii. existence at the time of the reference of the dispute to a
Board, Arbitration, court or Tribunal.
iv. 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.
 Difference Between Strike and Lockout

Strike Lockout
Workers shall do the strike. Employer or owner shall do the
lockout.
Workers do the strike because of Owners do the Lockout because of
the grievance and for its solution. the Disputes between owners and
workers.
Prior notice should be given by Prior notice should be given by the
the worker to the owner of the owner of the factory to the worker.
factory.
THANK YOU

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