The Industrial Disputes Act, 1947
The Industrial Disputes Act, 1947
Introduction
The Industrial Disputes Act, 1947 is a central legislation enacted to promote industrial peace and harmony by providing mechanisms to resolve disputes between employers and employees. It primarily focuses on preventing and settling industrial disputes through negotiation, conciliation, adjudication, or arbitration.
The Act applies to industries and covers a wide range of issues concerning employment, layoffs, retrenchment, strikes, lockouts, and unfair labor practices.
Objectives
To secure industrial peace by preventing strikes and lockouts.
To promote amicable settlement of industrial disputes.
To provide machinery and procedure for investigation and settlement of disputes.
To regulate the conditions of employment.
To protect workers against unfair labor practices.
To safeguard the rights of both employers and employees.
Scope of the Act
Applies to industries, which broadly include factories, plantations, mines, transport services, shops, and commercial establishments.
Covers all industrial disputes connected with employment, non-employment, termination, terms and conditions, or privileges of workers.
Key Definitions
Industry (Section 2(j)): Includes any business, trade, manufacture, or calling of employees.
Workman (Section 2(s)): Any person employed in an industry, other than those employed mainly in managerial or administrative capacities.
Industrial Dispute (Section 2(k)): Any dispute or difference between employers and workmen, or between workmen themselves, relating to employment or conditions of labor.
Lay-off (Section 2(kkk)): Suspension of employment for a temporary period.
Retrenchment (Section 2(oo)): Termination of service by the employer for reasons other than disciplinary.
Strike (Section 2(q)): Concerted refusal to work by employees.
Lockout (Section 2(l)): Employer’s temporary closing of the workplace to compel employees.
Main Provisions
1. Settlement of Industrial Disputes
Works Committee (Section 3): In industrial establishments with 100 or more workers, a committee of employers and employees is constituted to resolve disputes at the workplace level.
Conciliation Officers (Section 4): Appointed by the government to mediate between parties and promote settlement.
Board of Conciliation (Section 5): When conciliation officers fail, a board is formed for further efforts at settlement.
Court of Inquiry (Section 6): Investigates the causes of disputes without enforcing any settlement.
Labour Courts (Section 7): Set up to adjudicate disputes relating to unfair labor practices, wages, or conditions of employment.
Industrial Tribunals (Section 7A): Adjudicate disputes of a wider and more serious nature.
National Tribunal (Section 7B): Can be constituted for disputes of national importance.
2. Strikes and Lockouts
Prohibits strikes and lockouts in public utility services without prior notice.
Requires notice periods to be observed before strikes or lockouts.
Provides penalties for illegal strikes or lockouts.
3. Lay-offs, Retrenchment, and Closure
Defines lay-off, retrenchment, and closure.
Requires employers to pay compensation to workmen affected by lay-offs or retrenchments.
Employers must follow procedures and obtain government permission before retrenchment or closure in some cases.
Workers have the right to notice and compensation during retrenchment or closure.
4. Unfair Labor Practices
Prohibits unfair practices by employers (e.g., discrimination, interference with union activities).
Prohibits unfair practices by workmen (e.g., coercion, violence).
Labour courts and tribunals can take action against such practices.
Important Sections to Note
| Section | Description |
|---|---|
| 2(k) | Definition of Industrial Dispute |
| 3 | Works Committee |
| 4 | Conciliation Officers |
| 5 | Board of Conciliation |
| 6 | Court of Inquiry |
| 7 | Labour Courts |
| 7A | Industrial Tribunals |
| 22 | Prohibition of strikes and lockouts |
| 25F | Conditions precedent to retrenchment |
| 33C | Protection of action taken in good faith |
| 33D | Power to exempt industries |
Landmark Case Laws
1. Bangalore Water Supply and Sewerage Board v. A. Rajappa (1978 AIR 548)
Facts: The issue was whether persons employed by the Board were ‘workmen’ under the Act.
Held: The Supreme Court gave a broad and liberal definition of 'workman,' including those who perform any skilled or unskilled manual, supervisory, or clerical work.
Significance: This judgment expanded the scope of who is covered by the Act.
2. T.K. Rangarajan v. Government of Tamil Nadu (2003 AIR 1058)
Issue: Whether the state government could refuse to implement wage revisions ordered by the Industrial Tribunal.
Held: The court upheld the award of the tribunal and ruled that the government must comply with such awards.
Significance: Reinforced the authority of industrial tribunals and workers' right to fair wages.
3. Workmen of A. Rajappa Iyer v. Management (AIR 1962 SC 1086)
Issue: The definition of “industry” under Section 2(j).
Held: The court adopted a wide definition of industry, including any systematic activity organized for production or distribution of goods or services.
Significance: Clarified the broad application of the Act.
4. Tata Engineering and Locomotive Co. Ltd. v. Their Workmen (1969 AIR 122)
Issue: Validity of strikes.
Held: Strikes called in violation of the statutory provisions under the Act are illegal and can be restrained.
Significance: Established the procedure for lawful strikes.
5. Steel Authority of India Ltd. v. National Union Waterfront Workers (2001 AIR 2424)
Issue: Whether an industrial dispute can be raised by non-workmen.
Held: Only disputes involving ‘workmen’ are maintainable under the Act.
Significance: Reiterated the distinction between workmen and others.
Practical Impact
The Act provides a comprehensive framework for preventing industrial unrest.
It balances the interests of employers and employees by providing clear mechanisms for dispute resolution.
It protects workers from arbitrary retrenchment and unfair labor practices.
The establishment of Labour Courts and Industrial Tribunals provides legal avenues for adjudication.
The Act controls the use of strikes and lockouts, especially in essential services.
Summary
| Aspect | Explanation |
|---|---|
| Purpose | Prevention and settlement of industrial disputes |
| Applicability | Industrial establishments employing workers |
| Mechanisms | Works Committee, Conciliation, Labour Courts, Industrial Tribunals |
| Protection | Workers’ rights, against unfair labor practices |
| Regulation | Strikes, lockouts, layoffs, retrenchment |
| Judicial Interpretation | Broad and liberal definitions of ‘workman’ and ‘industry’ |
| Enforcement | Penalties for illegal strikes and unfair labor practices |
RELATED Blog
0 comments