Labour Legislation: Industrial Dispute Act 1947

1. Labour Legislation: Industrial Dispute Act 1947 • Introduction • Scope and Object • Definitions • Modes of Settlement of Industrial Dispute • Notice of Change

2. Introduction • This law relates to industrial development of the country and hence these laws plays an effective role in governing the rules and regulations prevailing in any industry.

3. Important Definitions • Appropriate Government Sec 2(a) • Average Pay Sec 2 (aaa) • Award Sec 2(b) • Banking Company Sec 2 (bb)

4. Appropriate Definitions • Appropriate Government Sec 2 (a) • In relation to some industrial disputes, the Central govt and in relation to some others, the state govt concerned are the appropriate govt to deal with such disputes. • Average pay Sec 2(aaa) • Calculating average pay in respect of workman whether he is paid by month, week or by day. • Award Sec 2(b) • An interim or final determination • Banking Company Sec 2 (bb) • As defined in sec 5 of Banking companies Act 1949 • Closure Sec 2 (cc) • Permanent closing down of place of employment or part thereof • Employer Sec 2 (g) • A person who employees someone to do work for him • Independent Sec 2(i) • Unconnected with the industrial dispute or with any industry

5. Industry Sec 2(j) • It means any systematic activity carried on by cooperation between an employer and his workmen for the purpose of production, supply or distribution of goods and services with a view to satisfy human wants or wishes • Industrial Dispute Sec 2 (K ) • Dispute or difference between employers and employers, or employers and workmen; workmen and workmen • Industrial establishment or Undertaking ( Sec 2 A) • Layoff Sec 2(kkk) • Layoff means putting aside workmen temporarily. • Lockout Sec 2 (L) • Lockout means closing of place of employment or suspension of work or the refusal by an employer to continue to employ any number of persons employed by him • Public Utility Service Sec 2 (n) • Any railway service or any transport service, major port or dock, postal ,telegraph, telephone services, industry supplying power, light or water, public conservancy or sanitation.

6. Appropriate Definitions\ • Retrenchment Sec 2 (oo) • Discharge of surplus labour or staff by the employer for any reason whatsoever • Settlement Sec 2 (p) • Modes of settling industrial disputes between employer and workmen • Strike Sec 2 (q) • Strike means stoppage of work by body of workmen acting in concert with a view to bring pressure upon the employer to concede to their demands during an industrial dispute • Wages Sec 2(rr) • Wages means all remuneration capable of being expressed in terms of money, which would , if terms of employment, expressed or implied were fulfilled, be payable to workman in respect of his employment or of work done in such employment. • Workman Sec 2 (s) • Workman means any person doing manual, skilled, unskilled, technical, operational, clerical, or supervisory work for hire or reward whether terms of employment are expressed or implied

7. Mode of settlement of Industrial Disputes • Conciliation • Adjudication • Arbitration

8. Conciliation • Works Committee Sec 3 • An instrument for peaceful settlement of industrial dispute has been introduced in India for the first time under act. • Where 100 or more workmen should be present employed or should have been employed or any day preceding 12 months. • Establishment should be industrial in nature.

9. Conciliation Officer (Sec 4) • It is discretionary on part to appoint Conciliation Officers • Independent agency • He cannot make a final decision • Has to investigate dispute without any delay • To hold conciliation proceedings and to make report with memorandum of settlement • Must submit report within 14 days

10. Board of Conciliation (Sec 5) • Consist of two chairman and two or four other members • To investigate dispute and all matters relating. • If settlement arrived at, board is required to send a report to appropriate govt. • In case of failure, failure report to send. • Must submit report within two months from date on which the dispute is referred to.

11. Court of Inquiry Sec 6 • To inquire into any matter appearing to be connected with or relevant to industrial dispute. • First duty is to enquire into matter. • Second to make report • Third to submit a report within a period of six months.

12. Adjudication • Labour Courts ( Sec 7) • Adjudication of Industrial disputes • Matters in second schedule: • Propriety or legality of any order passed • Application and interpretation of standing orders • Discharge or dismissal of workmen • Illegality of strike or lock out • Matters in Third Schedule

13. Tribunals Sec 7A • Matters relating to third schedule: • Wages including period and mode of payment • Compensatory and other allowances • Hours of work and rest intervals • Leave with wages holidays • Bonus, profit sharing, provident fund and gratuity • Classification by grades • Rules of discipline • Rationalization • Retrenchment of workmen and closure of establishment

14. National Tribunals Sec 7 B • To constitute one or more national tribunals by notification in the official gazette • Relates to dispute of national importance and are of such nature that industrial establishment situated in more than one state • Shall consist of one person to be appointed by central government • Or shall had been a judge of High Court • Central govt can appoint two persons as assessors to advise in proceedings.

15. Grievance Settlement Authorities Sec 9-C • Where in industrial establishment there are more than 50 or more workmen in any preceding twelve months • Where dispute is connected with an individual workmen and he has referred such dispute to the authority • Shall follow procedure and complete its proceedings within such period as may be prescribed

16. Arbitration • Sec 10 A says that arbitration should be by a written agreement. • Reference should be made before dispute had been referred to u/s 10 to a labour court or tribunal or national tribunal. • The names of the person or persons to act as arbitratormust be specified in the agreement. Such person may be presiding officers of labour court, tribunal or national tribunal.

17. Notice of Change Sec 9-A • As mentioned in schedule Fourth: • Wages , including the period and mode of payment. • Contribution paid or payable by the employer to any provident fund or pension fund • Compensatory and other allowances. • Hours of work and rest intervals. • Leave with wages and holidays • Rationalization, standardization, or improvement of plant or technique which is likely to lead to retrenchment of workmen.