Industrial Disputes

Definition
• It is a conflict, clash of ideas, a disagreement etc.

• According to Section 2(k) of the Industrial Disputes Act, 1947, an

‘industrial dispute’ means “any dispute or 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.
 Terms under Industrial Disputes Act, 1947

APPROPRIATE GOVERNMENT – Sec 2 (a)

• Refers to Central Government/State Government

ARBITRATOR – Sec2 (aa)

• Referred as an umpire.
• It means any person who is appointed to determine
differences and disputes between two parties.
WAGES – Sec 2(rr)

It means all remuneration capable of being expressed in terms of

money, if the term of employment were fulfilled, be payable to a
workman in respect of his employment or of work done in such
employment.

INDUSTRY- Sec 2(i)

Industry means any systematic activity carried on by co-operation

between an employer and his workmen whether such work men are
employed by such employee directly or by or through any agency
including a contractor for the production, supply or distribution of
goods or services with a view to satisfy human wants or wishes with
a motive to make any gain or profit; not merely spiritual or religious.
WORKMEN - Sec 2(s)

Means any person including an apprentice employed in any industry

to do any manual, unskilled, skilled, technical, operational, clerical or
supervisory work for hire or reward the terms of employment be
express or implied and there should be a contractual relationship
between master and servant
INDUSTRIAL ESTABLISHMENT- Sec 2(ka)

• Means an establishment or undertaking in which industry is carried on

PUBLIC UTILITY SERVICE- Sec 2(n)

• Means any industry specified in the First Schedule of Industrial

Disputes Act, 1947, can be declared as Public Utility Service by
government through a notification in the official Gazette for a fixed
period (not more than six month for the first instance)
SETTLEMENT – Sec 2(p)

Means
• A written agreement between the employer and workmen arrived in
the course of conciliation proceeding provided;

• Such agreement has been signed by the parties there to in the manner
prescribed

• A copy has been sent to an officer authorized by the appropriate

government and the conciliation officer.
 Machinery for Prevention and
Settlement of Industrial Disputes

Machinery for prevention and settlement of disputes

Voluntary Methods Government Machinery  

Statutory Measures

State Acts
Industrial Disputes Act, 1947
 Collective Bargaining Labour Administration  Works Committees
Machinery
 Trade Unions  Conciliation
 State Level
 Joint consultations (A) C.Officer
 Central Level (B) C. Board
 Standing Orders
 Arbitration
 Grievance Procedure
 Adjudication
 Code of Discipline
(a) Labour Courts
(b) Industrial Tribunals
(c) National Tribunals
Joint Management Councils

The JMC normally consists of equal number of representatives of

workers and employers looking after three things: information sharing,
consultative and administrative matters relating to welfare, safety,
training etc and the formulation of standing orders.(of course,
without encroaching on the jurisdiction of works committees)
Standing orders
These are the rules and regulations which govern the conditions of
employment of workers. The Industrial Employment (standing orders)
Act of 1946 provides for the framing of standing orders in all
industrial undertakings employing 100 or more workers.
Grievance procedure
A model grievance procedure as suggested by the Indian Labour
Conference, 1958 has more or less been widely accepted in India
now.
Code of discipline
It consists of a set of self-imposed obligations voluntarily
formulated by the central organisation of workers and employers.
 Authorities under Industrial Dispute Act,1947

• Works Committee (Sec 3)

• Conciliation Officers (Sec 4)

• Board of Conciliation (Sec 5)

• Court of Inquiry (Sec 6)

• Labour Court (Sec 7)

• Industrial Tribunal (Sec7-A)

• National Tribunal (Sec7-B)

WORKS COMMITTEE (Sec-3)

• Constituted based on appropriate Government order

• Applicable to industrial establishment in which 100 or more workmen

are employed on any day in the preceding 12 months

• Consists of representatives of employees and workmen engaged in the

establishment.

• Number of workmen representatives shall not be less than the

number of employer’s representatives

• Representatives of workmen are selected in consultation with Trade

union
DUTIES

• To promote measures for securing and preserving amity and good

relations between the employer and the workmen

• To comment upon matters of their common interest or concern.

CONCILIATION OFFICERS (Sec 4)

– The appropriate government, by notification in the official

Gazette appoints a specific number of persons as it think fit to
be as conciliation officers

– Conciliation officer may be appointed for a specified area or for

specified industries in specified area either as permanent or
for a limited period

– A conciliation officer shall be deemed to be as a public servant

as per Sec. 21 of Indian penal code 1860
DUTIES

• When any industrial disputes exist, the conciliation officer should

hold conciliation proceedings in a prescribed manner without delay
to have right settlement.

• Whether settlement is reached or not, the conciliation officer must

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 submitted in satisfied to the appropriate Government, it

may or may not refer the dispute to any authority under the Act. If
the Government is not making any reference, it should record and
communicate the reason to the contending parties

• The duty of a conciliation officer is administrative and not judicial

BOARD OF CONCILIATION (Sec5)

• The appropriate Government by a notification in the official Gazette

constitutes a Board of Conciliation for promoting the settlement of an
industrial dispute

• The Board consists of a Chairman and two or four other members, as the
appropriate government thinks fit

• The Chairman shall be an independent person; unconnected with the dispute

• The other members shall be persons appointed in equal number to represent

the parties to the dispute

• The person appointed to represent a party shall be appointed on the

recommendation of the party

• The appropriate Government appoints a fit person as it thinks, if any party fails
to make a recommendation within a prescribed period

• A Board of Conciliation can act only when a dispute is referred to it by the

Government
DUTIES

• When a dispute has been referred to a Board, it will investigate the

matter affecting the merits and right settlement of the dispute
without delay

• Whether settlement is reached or not, the Board must submit the

report within two months of the date on which the dispute was
referred to it

• If no settlement is arrived, the Government may refer the dispute

to the labour court, Industrial Tribunal or National Tribunal.

• The time for submission of report may be extended by such period

as may be agreed to in writing by all the parties to the disputes
• The report of the Board shall be in writing and shall be signed by
all the members of the Board.

• The report submitted shall be published by the appropriate

Government with in 30 days from the receipt

• A Board of Conciliation can only try to bring about a settlement.

It has no power to impose settlement on the parties to the
dispute
COURT OF INQUIRY (Sec 6)

• The appropriate Government, by notification in the official Gazette,

constitutes a Court of Inquiry in to any matter relevant to an
Industrial dispute

• A Court of Inquiry consists of one independent person or of number

of independent persons as the appropriate Government may think fit

• Court of Inquiry consists of two or more members, one of them shall

be appointed as Chairman

• The Court of Inquiry can act under a prescribed quorum; even at the
absence of Chairman

• If the service of the chairman is ceased by the Government through

notification, the court shall not act until a new chairman has been
appointed
• All members of the court shall be deemed to be public servants
under Sec 21 of the Indian penal code 1860

• Every inquiry by a court shall be deemed to be judicial proceeding

• A Court of Inquiry has same powers as a civil court under the Code
of Civil Procedure 1908

• The court has the right to appoint one or more persons having
special knowledge of the matter of the dispute as an advisor
DUTIES

• A Court shall inquire into the matters referred to it and report to

the appropriate government within a period of 6 months from
the commencement of the inquiry

• The report of the court shall be in writing and signed by all the
members of the court. Members are free to record their dissent

• The report submitted shall be published within a period of 30

days of its receipt by the Government
LABOUR COURT (Sec 7)

1. A labour court consists of one person only to be appointed by the

appropriate Government

2. A person shall not be qualified for appointment as presiding

officer of a labour court unless
• He is / has been a Judge of a High Court
• He has been as a District Judge /Additional District Judge for a
period not less than three years
• He has held any judicial office in India for not less than seven
years
DUTIES

• Adjudicate upon the industrial disputes relating to any matter

specified in the Second Schedule

• When an industrial dispute has been referred to a labour Court

for adjudication ,within the specified period, it should submit
award to the appropriate Government

• It shall be published in such manner as the appropriate

Government thinks fit within a period of 30 days from the date
of its receipt by the appropriate Government
INDUSTRIAL TRIBUNAL (Sec7-A)

• The appropriate Government by notification in the official Gazette ,

constitute one or more industrial tribunals for the adjudication of
industrial disputes relating to any matter specified in Second or Third
Schedule

• The Tribunal consists of one person to be appointed by the

appropriate Government

• A person shall not be qualified for appointment as the presiding

officer of an Industrial Tribunal unless
a) He is/ has been a Judge of a High Court
b) He has been a District Judge / Additional District Judge for a
period of three years
• No person shall be appointed to or continue in office of a presiding
officer if
• He is not an independent person.
• He has attained the age of 65 years.

DUTIES

• It shall submit its award to the appropriate Government within a

specified period if an industrial dispute is referred to an Industrial
Tribunal

• The award shall be in writing and shall be signed by its presiding

officer

• The award shall be published by the appropriate government within a

period of 30 days in a manner as the appropriate government thinks
fit

• As it is a quasi – judicial body, it must serve notice upon the parties to

the reference by name before making any award
NATIONAL TRIBUNAL (Sec7-B)

• The Central government ,by notification in the official Gazette

constitute one or more National Industrial Tribunals for the
adjudication of industrial disputes :
a. Involving questions of national importance
b. Which are of such a nature that industries are more than one
state are likely to be interested in, or affected by, such
disputes
c. Matters appearing in Second and Third schedule

• A National Tribunal consists of one person to be appointed by Central

Government

• A person shall not be qualified for appointment as a presiding officer

of a National Tribunal unless he is / has been a Judge of High Court
No person shall be appointed to ,or continue in the office of the
presiding officer of a National Tribunal if
• He is not an independent person
• He has attained the age of 65 years
DUTIES

• When an industrial dispute is referred to the National Tribunal for

adjudication, it shall submit its award to the appropriate government

• The award shall be in writing and shall be signed by the presiding

officer of the National Tribunal

• It shall publish the award within a period of 30 days from the date of its
receipt by Central Government