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THE INDUSTRIAL DISPUTES ACT,1947

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Title: THE INDUSTRIAL DISPUTES ACT,1947 Author: V.C.E.W Last modified by: VCEW Created Date: 10/22/2008 3:12:53 AM Document presentation format: On-screen Show (4:3) – PowerPoint PPT presentation

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Title: THE INDUSTRIAL DISPUTES ACT,1947


1
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.

2
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

3
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.

4
  • Not included in term industry
  • Any agricultural operation except where such
    agricultural operation is carried on in an
    integrated manner with any other systematic
    activity.
  • Hospitals or dispensaries.
  • Educational scientific, research or training
    institutions.
  • Institutions owned or managed by organizations.
  • Khadi or village industries.
  • Any domestic service.

5
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.

6
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.

7
Definitions
  • Appropriate government sec. 2 (a)
  • Average pay sec.2 (aaa)
  • Award sec.2(b)
  • Board sec.2 (c)
  • Closure sec.2.(cc)
  • Conciliation officer sec.2. (d)
  • Conciliation proceeding sec.2 .(e)
  • Controlled industry sec.2 (ee)
  • Court sec.2 (f)
  • Employer sec.2 (g)
  • Executive and office bearer in relation to a
    trade
  • union sec.2(gg) and sec.2(iii).
  • Independent person sec.2(i)
  • Industrial establishment or undertaking
    sec.2(ka)

8
  • 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)

9
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.

10
  • 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 employers right
  • C) for patently false reasons
  • D) on untrue allegations of absence without leave
  • E) disregarding the principles of natural justice

11
  • 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

12
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 employers
    property connected with the industry.
  • 8. to indulge in acts of force or violence or to
    hold out threats of intimidation against any
    workman

13
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.

14
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

15
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
  • Voluntary settlement and conciliation
  • Adjudication, and
  • Arbitration

16
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.

17
  • 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.

18
  • 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

19
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

20
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.

21
  • 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.

22
  • 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.

23
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

24
  • 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)

25
  • Reference to national tribunal
  • Where the central govt., is of opinion that
  • Any industrial dispute exists
  • Is apprehended
  • The dispute involves any question of national
    importance
  • 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
  • That the dispute should be adjudicated by
    national tribunal
  • Publication of reports and awards sec 17
  • Every report of a board of conciliation or court
    of inquiry together with any minute of dissent
    recorded therewith.

26
  • (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
  • 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

27
Strikes and lock outs
  • Prohibition of strikes and lock outs (sec 22
    23)
  • 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-
  • Without giving to employer notice of strike,
    within six weeks before striking.
  • Within 14 days of giving such notice
  • Before the expiry of the date of strike specified
    in the notice.
  • During pendancy of any conciliation proceedings.

28
  • 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

29
  • 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

30
  • 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.

31
  • 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.

32
  • 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-FFA2).

33
  • 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.

34
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).

35
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.

36
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).

37
  • 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).

38
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.

39
  • 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).

40
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

41
  • 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

42
  • 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)
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