The Industrial Disputes Act,
1947
Ms. Sugeetha t,Bsc(maths),M.B.A, M.Phil, NET,
guest lecturer,
Auxilium college
SYLLABUS
Industrial Dispute Act 1947: Scope and objectives-
features- Definition of Industry-industrial
dispute-Industrial establishment of undertaking-
Layoff,Lockout-retrenchment-strike-unfair labor
practices
Appropriate Government
It means in relation to any industrial dispute concerning any
industry carried on by or under the authority of the Central
Government or by a railway company, or any controlled industry as
may be specified, or any relation to an industrial dispute concerning
banking or an insurance company, a mine, or an oil-field or a major
port, the appropriate government would be the Central Government
In relation to any industrial dispute other than those specified
above, the appropriate government would be the State Government.
The general rule is that an industrial dispute arising between an
employer and his employees would be referred for adjudication by
the State Government except in the cases mentioned above. The
definition is exhaustive.
Workman [Sec.2(S)]
Workman’ 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. His terms of employment may
be express or implied. For the purpose of any
proceeding under this Act in relation to an industrial
dispute, ‘workman’ includes any person who has been
dismissed, discharged or retrenched in connection with,
or as a consequence of that dispute, or whose dismissal,
discharge or retrenchment has led to that dispute.
Industry [Sec.2 (j)]
In the light of the judgment in Bangalore Water Supply Case, the term ‘Industry’
has been defined in Sec.2 (j) as amended in 1982 as follows: ‘Industry’ means
any systematic activity carried on by co-operation between an employer and his
workmen (whether such workmen are employed by such employer 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 (not
being wants or wishes which are merely spiritual or religious in nature). It makes
no difference whether or not
Any capital has been invested for the purpose of carrying on such activity;or
Such activity is carried on with a motive to make any gain or profit.
‘Industry’ includes-
Any activity of the Dock. Labour Board established under Section 5-A of the
Dock Workers (Regulation of Employment) Act, 1948.Any activity relating to the
development of sales or business or both carried on by an establishment.
Award
Award [Sec 2 (b)] means an interim or a final determination of any
industrial dispute or of any question relating thereto by any Labour Court,
Industrial Tribunal or National Industrial Tribunal and includes an
arbitration award made under section 10A;
Industry [Sec. 2(j)]: Industry means any business, trade, undertaking,
manufacture or calling of employers and includes any calling, service,
employment, handicraft or industrial occupation or avocation of workmen.
Industrial Dispute [Sec. 2(k)]: 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.
OBJECTIVES
The main object of the Act is to provide for investigation and settlement of industrial disputes, the
amendment Act seeks to ensure speedier resolution of industrial disputes by removing procedural
delays. Besides creating an efficient statutory machinery for the settlement of industrial disputes
and thereby promoting industrial harmony, the Act also seeks to achieve certain other objects,
referred to as ‘certain other purposes’ in the preamble.
The objects are:
1. Promoting measures for securing and preserving amity and good relations between employer and
workmen.
2. Enquiring into any matter connected with or relevant to an industrial dispute.
3. Promoting the settlement of industrial disputes
4. Adjudication of industrial disputes.
5. Reference of individual disputes to grievance settlement authorities.
6. Voluntary reference of disputes to arbitration.
7. Prevention of illegal strikes and lock-outs.
8. Compensation for lay-off and retrenchment of workmen.
9. Provision for the payment of wages from the date of the award till the suit pending before courts of
law is decided.
10. Prevention of unfair labour practices.
11. These objects of the Act center round the securing of industrial harmony and social justice.
SCOPE & OBJECT
The object of the Industrial Disputes Act is to make provision for the investigation and
settlement of industrial disputes. The Act is primarily meant for regulating the relations of
employers and workmen, past, present and future. The principal aim of the Act is to
encourage collective bargaining and to maintain industrial peace by preventing illegal strikes
and lockouts and to provide lay off and retrenchment compensation.
The Act was passed with a view to removing certain shortcomings found in the working of
the Trade Disputes Act, 1929. It came into force on the first day of April 1947 [sec. 1(3)].
It extends to the whole of India [Sec.1 (2)]. It extends to all industries whether they are
carried on by private owners or by the government. The Act has been amended from time to
time. The latest amendment was made in 1984.
Thus, though the main object of the Act is to provide for investigation and settlement of
industrial disputes, the amendment Act seeks to ensure speedier resolution of industrial
disputes by removing procedural delays. Besides creating an efficient statutory machinery for
the settlement of industrial disputes and thereby promoting industrial harmony, the Act also
seeks to achieve certain other objects, referred to as ‘certain other purposes’ in the preamble.
Wages
Wages [Sec. 2(rr)]: Wages mean 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 or of the
work done in such an employment and includes:
(i) such allowances (including dearness allowance) as the workman is for the
time being entitled to;
(ii) the value of any house accommodation, or of supply of light, water, medical
attendance or other amenity or of any service or of any concessional supply of
food grains or other articles;
(iii) Any traveling concession. But the following are excluded:
(a) Any bonus.
(b) Any contribution paid or payable to any pension fund or provident fund, or
for the benefit of the workman under any law for the time being in force.
(c) Any gratuity payable on the termination of his service.
STRIKE
■ Sec. 2(q) defines a strike as
follows:
i. The cessation of work by a body of
persons employed in any industry acting in
combination ; or
ii. A concerted refusal, or a refusal under a
common understanding, of any number of
persons who are, or have been, so
employed to continue to work or accept
employment.
LOCK-OUT
A lock-out means [Sec.2(l)]
the closing of a place of employment; or
the suspension of work; or
the refusal by an employer to continue to employ
any number of persons employed by him.
It means the closure of the place of
business and not closure of business
itself.
LAY-OFF
• Definition [Sec.2 (kkk)]
“Lay-off” means the failure, refusal or inability of an
employer on account of shortage of coal, power or
raw materials or the accumulation of stocks or the
break-down of machinery or natural calamity or for
any other connected reason to give employment to a
workman whose name is borne on the muster rolls of
his industrial establishment and who has not been
retrenched
RETRENCHMENT
• Definition
Sec. 2 (oo) defines Retrenchment as the
termination by the employer of the service of the
workman for any reason whatsoever, otherwise
than a punishment inflicted by way of disciplinary
action.
Retrenchment does not include voluntary
retirement superannuation or termination of
employment on grounds of ill health.
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