THE INDUSTRIAL DISPUTES ACT,1947

This act weighed much against the

workers and was therefore replaced by
the trade disputes act 1929.
The main purpose of the act, however,
was to provide a conciliation machinery
to bring about peaceful settlement of
industrial dispute.
 Object of the Act

The main 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 ,through an internal works committee,
c) by promoting good relations, through an external
2,to ameliorate the condition of workmen in industry
a) by redressal of grievances of workmen
b) by providing job security
 DEFINITION OF INDUSTRY

Any systematic activity organized or arranged in a

manner in which trade or business was generally
organized or arranged would be an industry even if it
proceeded from charitable motives. it was the nature of
the activity that had to be considered and it was upon the
application of that test that even the states inalienable
functions fell within the definition of industry.
Included in term industry
a) Any activity of the dock labour board established under
sec.5-Aof the dock workers Act,1948;
b) Any activity relating to the promotion of sales or business
or both carried on by an establishment.
 Not included in term industry
a) Any agricultural operation except where such agricultural
operation is carried on in an integrated manner with any
other systematic activity.
b) Hospitals or dispensaries.
c) Educational scientific, research or training institutions.
d) Institutions owned or managed by organizations.
e) Khadi or village industries.
f) Any domestic service.
Definition of industry before amendments
in 1982
“Industry means any business, trade,
undertaking, manufacture or calling of
employees and includes any
callings,service, employment, handicraft or
industrial occupation or avocation of
workmen.
 Industrial dispute
Industrial dispute means any dispute or difference
between –
Employers and employers
Employers and workmen
Workmen and workmen.
Three ingredients are:
There should be real and substantial dispute or difference.
The disputes or difference should be between employer
and his workmen.
The disputes or difference must be connected with the
employment or non- employment or terms of employment,
or with the conditions of labour of any person.
 Definitions
1) Appropriate government [sec. 2 (a)]
2) Average pay [sec.2 (aaa)]
3) Award [sec.2(b)]
4) Board [sec.2 (c)]
5) Closure [sec.2.(cc)]
6) Conciliation officer [sec.2. (d)]
7) Conciliation proceeding [sec.2 .(e)]
8) Controlled industry [sec.2 (ee)]
9) Court [sec.2 (f)]
10) Employer [sec.2 (g)]
11) Executive and office bearer in relation to a trade
union [sec.2(gg)] and sec.2(iii)].
12) Independent person [sec.2(i)]
13) Industrial establishment or undertaking [sec.2(ka)]
14) Labour court [sec.2.(kkb)].
15) Lay-off [sec.2(kkk)]
16) Lock –out [sec.2 (l)]
17) National tribunal [sec.2(ll)]
18) public utility service [sec.2 (n)]
19) Retrenchment [sec.2.(oo)]
20) Settlement [sec.2.(p)]
21) Strike [sec.2.(g)]
22) Trade union [sec.2(qq)]
23) Tribunal [sec.2.(r)]
24) Unfair labour practices [sec.2.(ra)]
The fifth schedule: Unfair labour practice
I.- on the part of employers trade unions of employers
1. to interfere with workmen in the exercise of their right
to organize or to engage in concerted activities for the
purpose of collective bargaining or other mutual aid
A) threatening workmen with discharge of dismissal
B) threatening a lock-out or closure
2. to dominate any trade union,
A ) an employer taking active interest in organizing a
trade union
B ) an employer showing partiality or granting favour to
one of several trade unions attempting to organize his
workmen
3.to establish employer- sponsored trade unions of
workmen.
4.to encourage or discourage membership in any trade
union by discriminating any workman
A) punishing a workman because he urged other
workmen to join or organize a trade union
B) discharging a workman for taking part in any strike
C) changing seniority rating of workman
D) refusing to promote workman to higher posts
5. to discharge or dismiss workmen
A) by way of victimization
B) not in good faith but in colourable exercise of the
employer’s right
C) for patently false reasons
D) on untrue allegations of absence without leave
E) disregarding the principles of natural justice
6. to abolish the work of regular nature being done by
workmen, and to give such works to contractors as a
measure of breaking a strike
7. to transfer a workman from one place to another
8. to show favoritism to one set of workers regardless of
merit.
9. to employ workmen as temporaries and to continue
them as such for years.
10. to discharge workman with filing charges or testifying
against an employer
11. to recruit workmen during strike which is not an
illegal strike
12. failure to implement award , settlement or agreement
To indulge in acts of force or violence
II.- on the part of workmen and trade unions of
workmen
1. to be actively support or instigate any strike deemed
to be illegal under this act.
2. to coerce workmen in the exercise of their right to self
organization or to join a trade union
3. to refuse to bargain collectively in good faith with the
employer
4. to indulge in coercive activities against certification of
bargaining representative
5. to encourage or instigate such forms of coercive
actions willful, squatting on the work premises after
working hours
6. demonstrations at the residences of the employers or
the managerial staff members.
7. to indulge in willful damage to employer’s property
connected with the industry.
8. to indulge in acts of force or violence or to hold out
threats of intimidation against any workman
 WAGES
‘wages’ means all remuneration capable of being expressed
in terms of money, which would ,if the terms of employment
express or implied, were fulfilled be payable to a workman in
respect of his employment.
It includes :
i) allowances
ii) house accommodation, supply of water,light,medical
facility or any other services
iii) traveling concessions
iv) commissions payable on sales or business
‘wage’ does not include :
i) bonus
ii) contribution paid by the employer to any pension fund or
PF fund
iii) gratuity payable on the termination of his service.
 workman
‘ workman’ means any person employed in any industry
to do any manual, unskilled, skilled, technical,
operational, clerical or supervisory work for hire or
reward. His terms of employment may be express or
implied.
‘workman’ does not include any person –
• Who is subject to the Air force act,1950, or the Army
act,1950, or the Navy act,1957
• Who is employed in police service or as an officer or
other employee of a prison;
• Who is in managerial or administrative capacity
• Who being employed in supervisory capacity, draws
wages exceeding Rs. 1600
 Procedure for settlement of industrial
disputes and authorities under the act
1. Works committees (sec.3)
2. Conciliation officers (sec.4)
3. Boards of conciliation (sec.5)
4. Courts of inquiry (sec.6)
5. Labour court (sec.7)
6. Industrial tribunals (sec.7-a)
7. National tribunals (sec.7-b)
The act provides for the following settlement of
disputes under the act :
i) Voluntary settlement and conciliation
ii) Adjudication, and
iii) Arbitration
 Conciliation machinery
1. works committees (sec.3)
It consists of representatives of employers and
workmen's engaged in the establishment.
Powers and duties :
 To promote measures for securing and
preserving goodwill and good relations between
employers and workmen
 Comment upon matters of their common interest
or concern
 Endeavour to compose any material difference of
opinion in respect of such matters.
2. Conciliation officers (sec.4)
Duties :
 To hold conciliation proceedings.
 To investigate the dispute
 To send a report and memorandum of settlement

to appropriate government
 To send a full report
Powers :
 Power to enter premises
 Power to call for and inspect documents.
3. Board of conciliation (sec.5)
Duties :
 To bring about a settlement of dispute
 To send a report and memorandum of settlement
to the appropriate govt.
 To communicate reasons to the parties if no
further references made
 To submit reports within 2 months
Power :
 Power to enter premises
 Power to civil court
4. Courts of inquiry (sec,6)
Duties :
 To inquire into the matters referred to it and report
thereon
 To stand by the principles of fairplay and justice
Powers :
 Power to enter premises
 Power of civil court
 ADJUDICATION MACHINERY
Secs. 7 to 9 pertain to the constitution of
adjudication authorities under the Act.
These authorities are:
1. Labour courts (sec. 7)
Appointment and constitution.
The appropriate government may, by notification
in the official Gazette, constitute one or more
Labour courts for adjudication of industrial
disputes relating to any matters specified in the
second schedule
Matters within the jurisdiction of Labour courts
* The property or legality of an order passed by an
employer under the standing orders.
* The application and interpretation of standing orders.
* Discharge or dismissal of workmen
* Withdrawal of any customary concession or privilege.
* Illegally or otherwise of a strike or lock-out
* All matters other than those specified in third
schedule.
DUTIES:
* To adjudicate upon industrial disputes relating to
matters specified in second schedule.
* To give award within the specified period.
Powers:
* Power to enter premises.
* Powers of civil court.
Matters relating with jurisdiction of industrial Tribunal
 Wages, including the period and mode of payment.
 Compensatory and other allowances.
 Hours of work and rest intervals.
 Leave with wages and holidays.
 Bonus, profit sharing, provident fund and gratuity.
 Shift working otherwise than in accordance with
standing orders;
 Classification by grades.
 Rules of discipline
 Rationalization.
 Retrenchment of workmen and closure of
establishment.
 Any other matter that may be prescribed.
POWERS:
 Power to enter premises.
 Powers of civil court.
 Power to appoint assessors.
 Power to award costs.
DUTIES:
where an industrial dispute has been referred to a
tribunal for adjudication, it shall hold its proceedings
expeditiously and shall, within the period specified in
the order preferring.
 National Tribunal
Appointments and constitution:
The central government may, by notification
In the official gazette, constitute one or more national
industrial tribunals for the adjudication of industrial
disputes which, in the opinion of central govt., involve
questions of national importance or are of such a
nature that industrial establishments situated in more
than one state are likely to be interested in, or affected
by, such disputes.[sec7-B)1].
DUTIES:
* Where an industrial dispute has been referred to national
tribunal for adjudication,
* It shall hold its proceedings expeditiously .
* Within the period specified in the order referring such industrial
disputes, submit its award to the appropriate govt. [sec 15]
POWERS:
1. power to enter premises
2. powers of civil court
3. power to appoint assessors
4. power to award costs
NOTICE OF CHANGE IN CONDITIONS OF SERVICE
According to sec 9-A,no employer who proposes to
effect any change in the conditions of service
applicable to any workmen in respect of any matter
specified in the fourth schedule shall effect such
change.
(a) Without giving to workmen likely to be affected by
such change a notice in the prescribed manner of
the nature of the change proposed to be effected.
(b) Within 21 days of giving such notice sec(9)
Reference to national tribunal
Where the central govt., is of opinion that –
1. Any industrial dispute exists
2. Is apprehended
3. The dispute involves any question of national
importance
4. Is of such a nature that industrial establishment
situated in more than one state are likely to be
interested in ,or affected by , such dispute
5. That the dispute should be adjudicated by
national tribunal
Publication of reports and awards sec 17
(1) Every report of a board of conciliation or court of
inquiry together with any minute of dissent
recorded therewith.
(2) Every arbitration award
(3) Every award of a labour court, industrial or national
tribunal
Period of operation of settlement :
1.On such date as is agreed upon by parties to
dispute
2. If no date is agreed upon , on the date on which
the memorandum of settlement is signed by
parties to dispute
Period of operation of award:
An award shall subject to prov: of sec 19 remain
in operation for a period of 1 year from the date on
which the award becomes enforceable
 Strikes and lock outs
Prohibition of strikes and lock outs (sec 22 & 23)
1. Strike in a public utility service [sec 22(1)]
No person employed in a public utility service shall
go on strike in breach of a contract-
a) Without giving to employer notice of strike, within
six weeks before striking.
b) Within 14 days of giving such notice
c) Before the expiry of the date of strike specified in
the notice.
d) During pendancy of any conciliation proceedings.
2. lock out in a public utility service sec 22(2)
No employer carrying on any public utility service shall
lock out any of his workmen-
* Without giving them notice of lock out, within 6 weeks
before locking out
* Within 14 days of giving such notice.
* Before the expiry of date of lock-out specified
* During the pendency of any conciliation proceedings.
3.Strike and lock outs in an industrial establishments
sec23
No workmen shall go for or no employer shall declare a
lock out-
* During pendency of conciliation proceedings before a
board of conciliation
* During pendency of proceedings before a labour court,
industrial tribunal or national tribunal and 2 months
after proceedings
Illegal strikes and lock outs:(sec.24)
A strike is illegal if –
(a) it is commenced in contravention of sec 22 or 23
(b) it is continued in contravention of an order made
under sec10 (3)
LAY OFF AND RETRENCHMENT
APPLICATION OF sec 25-c to sec 25E
The provisions as to lay off and retrenchment of
workmen as in person in secs. 25-C to 25-E.
UNDER THE sec25-B
 A workmanship shall be said to be in continuous
service for a period if he is, for that period , in
uninterrupted services.
 services including:
Sickness
Authorized leave
 An accident
A strike which is not illegal
A lock-out or a cessation of work which is not due to
any fault on the part of the workman.
LAY –OFF
Right of workmen laid-off for compensation's 25-c)
1,The work men must not be a badli workman or a casual
workman if he is to be entitled to compensation.
2,His name must be borne on the master rolls of the industrial
establishment,
3,He must have completed not less than one year of continuous
services.
4,If the above conditions are fulfilled the workman whether laid-
off continuously or intermittently shall be paid compensation
by the employer for all days during which he is laid off, except
for such weekly holidays as may intervene.
5,The rate of compensation shall be equal to 50% of the total
basis of wages and dearness allowance that would have
been payable to him had he not been laid off (sec 25-c).
6,If during any period of 12 months, a workman is so laid off
for more than 45 days.

RETRECHMENT
Conditions precedent to retrenchment of workmen(sec.25-F)
No workman employed in any industry who has been in
continuous service for not less than 1year under an
employer shall be retrenched by that employer.
PRODUCE FOR RETRENCHMENT
 where an workmen in an industrial establishment , who is
a citizen of India, is to be retrenched and he belongs to a
particular category of workmen in that establishment.
TRANSFER AND CLOSING DOWN OF UNDERTAKING
A workman shall not be entitled to notice and compensation
where there has been the change of employers by reason of
the transfer.
A .The service of workman has not been interrupted by such
transfers.
B .The terms and conditions of service applicable to the
workman after such transfer are not in any way less favorable
to the workmen than those applicable to him immediately.
C .The new employer is under the terms of such transfer.
60 days notice to be given of intention to close down any
undertaking (sec 25- FFA).
An undertaking in which-less than 50 workman are
employed, less than 50 workman were employed on an avg
per working day in the preceding 12 months.
Accident in the undertaking or death of the employer (sec-
FFA[2]).
COMPENSATION TO WORKMEN IN
CASE OF CLOSING DOWN OF
UNDERTAKINGS.
where an undertaking is closed for any reason
whatsoever, every workman who has been in
continuous service for less than 1 year
Financial difficulties( including losses)
Accumulation of indisposed of stocks.
The expiry of the period of the lease or the
lien granted to it.
closing down of an undertaking set up for
construction of buildings,
bridges ,canals ,roads, dams.
 SPECIAL PROVISIONS RELATING TO LAY-
OFF,RETRECHMENT AND CLOSURE
PROHIBITION OF LAYOFF
1,Lay off to be with permission from appropriate government or
specified authority.
2,Application to be made by the employer or permission.
3,Application for permission to continue lay-off in a mine.
4,Order granting or refusing permission for lay-off to be
communicated to employer and workmen.
5,Presumption of permission if no order communicated with in
60 days.
6,Order binding for all parties for 1 year.
7,Review of order.
8,Lay-off illegal in certain cases.
9,Exemption.
penalty for illegal lay-off. The penalty for illegal lay-off is
imprisonment up to 1 month or fine up to Rs. 1,000 or
both(sec.25-n).
 CONDITIONS PRECEDENT TO RETRECHMENT
OF WORKMEN.
1,3 months notice and prior permission of the appropriate
Government or the specified authority required before
retrenchment.
2,Application to be made for permission.
3,Order granting or refusing permission for retrenchment to be
communicated to employer and workmen.
4,Presumption of permission if no order communicated within
60 days.
5,Order binding on all parties for 1 year.
6,Review of order.
7,Consequences of illegal retrenchment.
8,Exemption.
9,Compensation in case of permission for retrenchment- 15
days wages for every completed year of service.
penalty for illegal retrenchment is imprisonment up to 1 month
or fine up to Rs.1000 (or) both.
PROCEDURE FOR CLOSING DOWN AN
UNDERSTANDING:
Application for permission to close to be made at least 90
days before the intended date of closure.
Sec. 25- shall not, however, apply to an undertaking set up
for the construction of buildings, bridges, roads, canals,
dams or for other construction work.
Order granting or refusing permission to be communicated
to employer and workmen.
– the genuineness and adequacy of the reasons stated
by the employer;
– the interests of the general public, and
– all other relevant factors.
The compensation shall be equivalent to 15 days’ average
pay for every completed year of continuous service or any
part thereof in excess of 6 months [sec.25-O(8)].
 Presumption of permission if no order
communicated within 60 days. Under [sec.25-O
94)].
Order granting or refusing permission final and
binding on all parties for 1 year. [sec.25-O(4)].
Review of order.
– review its order granting or refusing to grant
permission, or
– refer the matter to an Industrial Tribunal for
adjudication [Sec.25-O (5)]
Consequences of illegal closure.
Exemption:
Penalty for closure (Sec.25-R)
Shall be punishable with imprisonment for a term
which may extend to 6 months, or with fine which
may extend to Rs.500, or with both [Sec.25-R(1)].
 UNFAIR LABOUR PRACTICES
The Amendment Act of 1982 has introduced a new
Chapter V-C containing two Secs. 25-T and 25-U.
Prohibition of unfair labour practice (Sec. 25-T)
Penalty for committing unfair labour practice (sec. 25-U)
PENALTIES:
Penalty for general offences [sec.31(2)], if no other be
punishable with fine which may extend to Rs.100.
MISCELLANEOUS:
Offences by companies, etc. (Sec.32), where a person
committing an offence under this Act is a company or
other body corporate or an association of persons, every
director, manager, secretary, agent or other officer or
person concerned with the management thereof shall be
deemed to be guilty of such offence.
Conditions of service to remain unchanged during
pendency of proceedings (sec.33)
Employer not to alter conditions of service or punish for
misconduct during pendency of proceedings [sec.33(1)].
in regard to any matter connected with the dispute , alter,
to the prejudice of the workmen concerned in such
dispute, the conditions of service applicable to them
immediately before the commencement of such
proceeding
[Sec.33(1) (a)];
for any misconduct connected with the dispute,
discharge or punish, whether by dismissal or otherwise
any workmen connected in such dispute [sec.33(1)(b)].
PENALTY FOR CONTRAVENTION OF
PROVISION OF SEC.33 [Sec.31(1)].
Shall be punishable for a term which may extend to 6
months, or with fine which may extend to Rs.100 or with
both.
Recovery of money due from an employer (Sec.33-C)
Cognizance of offences (Sec.34)
No court inferior to that of a Metropolitan
Magistrate or a Judicial Magistrate of the First Class
shall try any offence punishable under this Act
[sec.3492)]
Protection of persons (Sec.35)
expulsion from any trade union or society, or
any fine or penalty, or
deprivation of any right or benefit to which he or his legal
representatives would otherwise be entitled, or
 any disability either directly or indirectly or any
disadvantage as compared with other members of the
union or society {sec.35(1)]
– Representation of parties (sec.36)
any member of the executive or other office-bearer of
a registered trade union of which he is a member;
where the worker is not a member of any trade union,
by any member of the executive or other office-bearer
of any trade union connected with, or by any other
workman employed in, the industry .
– Representation of employers.
an officer of an association of employers of which he is
a member;
an officer of a federation of association of employers of
which the association referred to in clause (a) is
affiliated;
Power to remove difficulties (sec.36-A)
Power to exempt (sec.36-B)
Protection of action taken under the Act (sec.37)
Power to make rules (sec.38)