Labour Laws FY-LLB Year (2021-2022)

Scope and Object of Industrial

Disputes Act, 1947

Under the guidance of

Prof. Kevin Tauro & Prof. Abhinav Mishra

Submitted by-
NAME: Fazal Zafar Shaikh
CLASS: FYLLB
ROLL NO: 213099
SIGNATURE:
 INDEX Page
Sr.No
1 Introduction 1
2 Applicability 2
3 Industrial Dispute-Sec. 2 (k) 3
4 Background 4
5 What is the Indian Industrial Dispute Act of 1947? 5
6 Objectives of the Industrial Disputes Act, 1947 6-7
7 Features of the Act 8
8 Authorities under the Act. 9-16
9 Bibliography 17
 1

Introduction

Industrial Disputes Act, 1947

The main purpose of the Industrial Disputes Act, 1947 is to ensure fair terms
between employers and employees, workmen and workmen as well as
workmen and employers.. The objective of the Industrial Disputes Act is to
secure industrial peace and harmony by providing machinery and procedure
for the investigation and settlement of industrial disputes by negotiations.
Industrial Disputes Act, 1947
An Act to make provision for the investigation and settlement of industrial
disputes, and for certain other purposes.
Citation Act No. 14 of 1947, Enacted by Central Legislative Assembly - Date
enacted 11 March 1947 - Date assented to 11 March 1947 - Date commenced 1
April 1947 - The Industrial Disputes Act 1947 extends to the whole of India and
regulates Indian labour law so far as that concerns trade unions. It came into
force April 1, 1947.

The objective of the Industrial Disputes Act is to secure industrial peace and
harmony by providing machinery and procedure for the investigation and
settlement of industrial disputes by negotiations.
The laws apply only to the organised sector. Chapter V-B, introduced by an
amendment in 1976, requires firms employing 300 or more workers to obtain
government permission for layoffs, retrenchments and closures. A further
amendment in 1982 (which took effect in 1984) expanded its ambit by reducing
the threshold to 100 workers.
The Act also lays down:
The provision for payment of compensation to the workman on account of
closure or lay off or retrenchment.
The procedure for prior permission of appropriate Government for laying off or
retrenching the workers or closing down industrial establishments
Unfair labour practices on part of an employer or a trade union or workers.

https://www.mgkvp.ac.in/Uploads/Lectures/47/1425.pdf
 2

Applicability

The Industrial Disputes Act extends to whole of India and applies to every industrial
establishment carrying on any business, trade, manufacture or distribution of goods
and services irrespective of the number of workmen employed therein.

Every person employed in an establishment for hire or reward including contract

labour, apprentices and part-time employees to do any manual, clerical, skilled,
unskilled, technical, operational or supervisory work, is covered by the Act.
This Act though does not apply to persons mainly in managerial or administrative
capacity, persons engaged in a supervisory capacity and drawing > 10,000 p.m or
executing managerial functions and persons subject to Army Act, Air Force and Navy
Act or those in police service or officer or employee of a prison.

https://www.mgkvp.ac.in/Uploads/Lectures/47/1425.pdf
 3

Industrial Dispute-Sec. 2 (k)

Industrial Dispute is any dispute of difference between employers and employers or

between employers and workmen; or between workmen and workmen, which is
connected with the employment or non-employment or the terms of employment or
with the conditions of labour of any person.―

Industrial dispute as defined under Sec. 2(k) exists between-

Parties to the dispute who may be

Employers and workmen

Employers and Employers
Workmen and workmen

a) There should be a factum of dispute not merely a difference of opinion.

b) It has to be espoused by the union in writing at the commencement of the dispute.

Subsequent espousal will render the reference invalid. Therefore date when the dispute
was espoused is very important.

c) It affects the interests of not merely an individual workman but several workmen as a
class who are working in an industrial establishment.
d) The dispute may be in relation to any workman or workmen or any other person in
whom they are interested as a body.

Misra S.N., Labour & Industrial Laws with Latest Amendments, 29th Edition, Central Law
Publications, Allahabad., P-24.
 4

Background

The Act came into effect on the 1st day of April, 1947.
Prior to it’s introduction the labour disputes were governed by:
1. The workmen’s Breach of Contract Act, 1859.
2. The Employments & Workmen’s (Dispute) Act, 1860.
3. The Trade Disputes Act, 1920.
4. The Indian Trade Union’s Act, 1926.
5. Trade Disputes Act, 1929.---[Banned Strikes]
6. Bombay Trade Disputes (Conciliation) Act, 1934.
7. The Trade Disputes (Amendment) Act, 1938.

Misra S.N., Labour & Industrial Laws with Latest Amendments, 29th Edition, Central Law Publications,
Allahabad., P-24.
 5

What is the Indian Industrial Dispute Act of 1947?

The Industrial Dispute Act of 1947 has been described as the latest milestone in the
industrial development in India. The Act has seen new additions in the past few years.
However, the principal objectives of the Industrial Dispute Act of 1947 are:

Objectives of Indian Industrial Dispute Act:

1. To encourage good relations between labor and industries, and provide

a medium of settling disputes through adjudicator authorities.
2. To provide a committee for dispute settlement between industry and
labor with the right of representation by a registered trade union or by an
association of employers.
3. Prevent unauthorized strikes and lockouts.
4. Reach out to labor that has been laid-off, unrightfully dismissed, etc.
5. Provide labor the right to collective bargaining and promote
conciliation.

New Indian Industrial Dispute Act Principles:

1. A permanent conciliation committee for the speedy settlement of

industrial disputes.
2. Compulsory arbitration in public utility services and enforcement of
arbitration awards.
3. Strikes during proceedings of conciliation and arbitration meetings are
prohibited.
4. Set aside specific times for conciliation and arbitration meetings.
5. Employers have to be obliged to communicate with labor unions.
6. Mutual consultation has to be set up between industry and labor by the
Works Committee.
7. Disputes between labor and industry have to be forwarded to an
Industrial Tribunal. If the Industrial tribunal fails to handle the case, the
case should be forwarded to the appropriate government.

https://www.mgkvp.ac.in/Uploads/Lectures/47/1425.pdf
 6

Objectives of the Industrial Disputes Act, 1947

The act was drafted to make provision for the investigation and settlement of
industrial disputes and to secure industrial peace and harmony by providing
mechanism and procedure for the investigation and settlement of industrial
disputes by conciliation, arbitration and adjudication which is provided under the
statute.

This Act was passed was with a key objective of “Maintenance of Peaceful work
culture in the Industry in India” which are mentioned under the Statement of
Objects & Reasons of the statute.

The Act also lays down:

1. The provision for payment of compensation to the workman on account of
closure or lay off or retrenchment.
2. The procedure for prior permission of appropriate Government for laying off or
retrenching the workers or closing down industrial establishments
3. The actions to be taken against unfair labour practices on part of an employer
or a trade union or workers

https://byjus.com/free-ias-prep/industrial-disputes-act/
 7

Object 0f Industrial Disputes Act,

1947
The main object of the Act, as given by the Hon’ble Supreme Court in Workmen of
Dimakuchi Tea Estate vs Management of Dimakuchi Tea Estate, AIR 1958 SC 353 are as
given bellow:
1. The promotion of measures for securing amity and good relations between the employer
and workmen;
2. An investigation and settlement of industrial disputes between employers and
employers, employers and workmen or
workmen and workmen with a right of representation by a registered Trade Union or
Federation of Trade Unions or Association of Employers or a Federation of Association of
Employers;
3. The Prevention of illegal Strikes and Lock-Outs;
4. Relief to Workmen in the matter of lay-off, retrenchment and closure of an undertaking;
5. Collective Bargaining.
Apart from that some of the main objectives of the Act are:
6. To achieve the promotion of harmony in labour-capital relationship;
7. It provides a machinery for the settlement of industrial disputes by arbitration or
adjudication;
8. It attempts to ensure social justice and economic progress, by fostering industrial
harmony;
9. It enables workmen to achieve their demands by means of the legitimate weapons of
strikes and thus facilitates collective bargaining.
10. It helps the State to play a constructive role in employer – workmen relationship, in
keeping with the concept of a Welfare State.

Misra S.N., Labour & Industrial Laws with Latest Amendments, 29th Edition, Central Law
Publications, Allahabad., P-24.
 8

Features of the Act

The features of the Industrial Disputes Act are listed out.

The act applies to entire India also includes the state of Jammu and Kashmir.

It favours arbitration over the disputes between employers and workers.

It affords for setting up of works committees as machinery for mutual discussion

between employers and workers to promote friendly relation.

The act paved the way for creating permanent conciliation machinery at various

stages having definite time limits for conciliation and arbitration.

This act emphasis on compulsory adjudication apart from the conciliation and

voluntary arbitration of Industrial Disputes.

The Act empowers the Government to refer the dispute to an appropriate authority,

i.e., Labour Court, Industrial tribunal and National tribunal depending upon the

nature of the dispute either on its own or on the request of the parties.

https://www.indiafilings.com/learn/industrial-disputes-act/
 9

Authorities under the Act

The following are the authorities specified under the Industrial Dispute Act.

Works Committee.
Conciliation Officers.
Board of Conciliation.
Court of Inquiry.
Labour Court.
Industrial Tribunal.
National Tribunal.

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 10

Works Committee

The works committee is considered to be a powerful social institution only to secure

cooperation between workers and employers, but to make the will of the employees
effective on the management. According to section 3 of the Industrial Disputes Act, in case
of an industrial establishment which contains 100 or more workmen are employed or
have been employed on any day in the preceding twelve months, the appropriate
Government by ordinary or particular order, acquire the employer to build a works
committee containing of representatives of employers and workmen engaged in the
establishment. The number of representatives of workers on Works Committee should
not be less than the number of representatives of the employers.

Responsibilities of Work Committee

To promote measures for securing and preserving good relations

between the employer and the workmen.
To communicate upon subjects of their common interest or concern.

Ibid
 11

Conciliation Officers

The appropriate government will appoint conciliation officers charged with the duty of
mediating in and promoting the settlement of the industrial disputes. Those conciliation
officers are appointed for a specified area or a specified industry in a specified area, and his
appointment may be permanent or temporary.

Responsibilities of Conciliation Officers

In case of any industrial disputes exist, the conciliation officer should maintain
conciliation proceedings in a prescribed manner without delay to have the right
settlement.
Whether the settlement is reached or not, the conciliation officer has to submit the
report within 14 days of the commencement of the conciliation proceedings or within the
date fixed by the appropriate government.
If the report proposed in satisfied to the respective Government, it may refer or not refer
the dispute to any concerned authority under the Act. If the Government is not
performing any endorsement, it should record and communicate the reason to the
relevant parties.
The duty of a conciliation officer is administrative and not judicial.

Ibid
 12

Board of Conciliation

Similarly, a board of conciliation also be constituted to promote the settlement of industrial

disputes. A board should consist of a chairperson and two or four other members, as the
appropriate government thinks fit. The chairman should be an independent person, and the
other member should be a person appointed in equal numbers to represent the parties to
the dispute on the recommendation of the parties concerned. If any party refuses to make a
recommendation within the prescribed time, then the appropriate government can appoint
such persons eligible to represent the party.

Responsibilities of Board of Conciliation

When a dispute has been proposed to a Board, the board will investigate the matter
affecting the merits and right settlement of the dispute without delay.
Whether settlement reached or not, the Board must submit the report within two months
of the date on which the dispute was proposed to it.
If no settlement has arrived, the Government may refer the dispute to the labour court,
Industrial Tribunal or National Tribunal.
The time for submission of the report will be extended by the period as agreed by all the
parties to the disputes
The report of the Board should be in the written notice and has to be signed by all the
members of the Board.
The appropriate Government should publish the report submitted within 30days from the
receipt
A Board of Conciliation only has the power to bring about a settlement. It has no authority
to impose a settlement on the parties to the dispute.

Ibid
 13

Courts Of Inquiry

The appropriate government will constitute a court of inquiry consisting thirteen of one or
more independent persons to inquire into any subject connected with or relevant to an
industrial dispute where a court consists of two or more members any one of them will be
appointed as chairman.

Responsibilities of Courts of Inquiry

A Court will inquire into the request raised to it and report to the appropriate
government within six months from the commencement of the inquiry.
The report of the court will be in the form of a written statement and signed by all the
members of the court.
Members are free to record their dissent. The report submitted will be published within
30 days of its receipt by the Government.

Ibid
 14

Labour Courts

The appropriate government will constitute one or more labour courts to adjudicate
industrial disputes relating to any of the following entities.
The propriety or legality of an order passed by an employer under the standing orders.
The application and interpretation of standing orders.
Discharge or dismissal of workers, including the retirement, grant of relief to workers
wrongfully dismissed.
Withdrawal of any customary concession or privilege.
The appropriate government will appoint a labour court which consists of one person with
the necessary judicial qualifications and will be appointed by the appropriate government.

Responsibilities of Labour Courts

Adjudicate upon the industrial disputes regarding any subject specified in the Second
Schedule.
When an industrial dispute has been proposed to a Labour Court for adjudication,
within the specified period, it should submit award to the appropriate Government.
The appropriate Government will publish it within 30 days from the date of its receipt.

Ibid
 15

Industrial Tribunals

The appropriate Government by notification in the legal Gazette will constitute one or more
industrial tribunals for the adjudication of industrial disputes relating to any matters specified
above as in the case of Labour Court, or the following matters, namely
Wages include 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 by standing orders.
Rules of discipline
Rationalisation
Retrenchment of workers and closure of establishment and
Any other subject which is prescribed.

Responsibilities of Industrial Tribunals

It should submit its request to the appropriate Government within a specified period if an
industrial dispute is proposed to an Industrial Tribunal.
The request should be in written format and also be signed by its presiding officer.
The request made should be published by the appropriate government within 30 days in a
prescribed manner.
Then the judicial body needs to serve notice upon the parties to the reference by name
before making any request.

Ibid
 16

National Tribunal

The Central Government by notification in the legal Gazette, constitute one or more National
Industrial Tribunals for the adjudication of industrial disputes in the opinion of the Central
Government involve questions of the national importance of industrial establishments situated
in more than one State are likely to be interested or affected by such disputes.
A National Tribunal will consist of one person to be appointed by the Central Government. To
be qualified as a Presiding Officer of a National Tribunal, a person must be or must have been a
Judge of a High Court, or must have held the office of the Chairman or any other member of the
Labour Appellate Tribunal for at least two years. The Central Government may appoint two
assessors to advise the National Tribunal, in proceedings before it.

Responsibilities of National Tribunals

When an industrial dispute is requested to the National Tribunal for adjudication, it should
submit its request to the appropriate government.
The request should be in written format and also be signed by the presiding officer of the
National Tribunal.
It should publish the request made within a period of 30days from the date of its receipt by
Central Government.

Ibid
 17

BIBLIOGRAPHY

Misra S.N., Labour & Industrial Laws with Latest Amendments, 29th Edition, Central Law
Publications, Allahabad., P-24.

https://www.mgkvp.ac.in/Uploads/Lectures/47/1425.pdf

https://byjus.com/free-ias-prep/industrial-disputes-act/

https://www.indiafilings.com/learn/industrial-disputes-act/