THE INDUSTRIAL
DISPUTE ACT ,1947
ORGANISATIONAL DEMOCRACY AND INDUSTRIAL RELATIONS
BY:-
YUVRAJ AMIT-546
DEEPANSHU AGGARWAL-502
INTRODUCTION
Objective: The Act aims to provide a legal
framework for the investigation and
settlement of industrial disputes.
Date of Enactment: It was enacted on 11th
March 1947 and came into force on 1st April
1947.
Applicability: Extends to the entire country
and applies to all industries, employers, and
workers.
DEFINITIONS (SECTION 2)
The Act defines key terms such as “appropriate Government,”
“industry,” “industrial dispute,” and “workman.” These definitions
lay the foundation for its applicability in various contexts.
Workman: Any person employed in an industry for skilled/unskilled
work, except those in managerial or administrative roles.
Industrial Dispute: A dispute between employers and employees
regarding employment terms or conditions.
Employer: Any person who employs workers in an industry, including
government or public sector undertakings.
Trade Union: Any combination of workers formed primarily for the
purpose of regulating the relations between workers and employers.
AUTHORITIES UNDER THE ACT (CHAPTER II)
AUTHORITIES UNDER THE ACT (CHAPTER II)
Preventive Machinery
Worker’s Participation in Management: Involves workers in decision-making through
methods like work committees, suggestion schemes, joint management councils, worker
directors, and co-partnership.
Collective Bargaining: Process where employer and employee representatives negotiate
to resolve disputes and govern employment conditions.
Grievance Procedure: Mandatory for establishments with 100+ workers, per Sec. 9-C of
the Industrial Disputes Act, to resolve worker grievances in a time-bound manner.
Tripartite Bodies: Central and state bodies like the Indian Labour Conference and State
Labour Advisory Boards mediate between government, employers, and unions.
Code of Discipline: A voluntary code outlining guidelines to prevent disputes through
negotiation without external interference.
Standing Orders: Guidelines for employer-employee relations under the Industrial
Employment (Standing Orders) Act, 1946, required in factories with 100+ workers.
AUTHORITIES UNDER THE ACT (CHAPTER II)
Settlement Machinery
Conciliation: A third party (conciliation officer or board) assists employers and employees in
resolving disputes voluntarily or compulsorily.
Conciliation Officer: Appointed by the government to mediate between disputing parties.
Board of Conciliation: A tripartite, ad-hoc body to promote settlement.
Court of Enquiry: Investigates and reveals the causes of disputes if conciliation fails, aiming to
provide a detailed report but without binding authority.
Voluntary Arbitration: Disputes are resolved through an independent arbitrator chosen by both
parties voluntarily. It supplements collective bargaining.
Adjudication: A legal intervention where disputes are settled by a government-appointed
authority. The system includes:
Labour Courts: Handle disputes related to employment conditions, standing orders,
dismissals, and strikes.
Industrial Tribunals: Handle disputes involving wages, working hours, allowances,
retrenchment, and rationalization.
National Tribunals: Deal with disputes of national importance or those affecting multiple
states.
REFERENCE OF DISPUTES
(CHAPTER III)
Boards, Courts, and Tribunals (Section
10): Disputes can be referred to these
bodies by the appropriate Government.
Voluntary Arbitration (Section 10A):
Allows for disputes to be settled through
mutual agreement, bypassing formal
litigation
PROCEDURES AND
POWERS (CHAPTER IV)
Conciliation Proceedings (Section 12):
Conciliation officers try to settle disputes
through mutual agreement.
Powers of Labour Courts (Section 11A):
Labour Courts have the authority to
provide relief in cases of unjust dismissal
of workmen
STRIKES AND LOCKOUTS (CHAPTER V)
Legal Strikes (Section 22): Restrictions are placed on strikes in public
utility services, requiring notice periods.
Illegal Strikes (Section 24): Strikes conducted without proper notice or
during conciliation proceedings are deemed illegal
LAYOFF AND RETRENCHMENT
(CHAPTERS VA & VB)
Layoffs (Section 25C): Workers laid off due to
external factors (e.g., lack of materials) are entitled
to compensation.
Retrenchment (Section 25F): Conditions precedent
for retrenchment include providing notice and
compensation to affected workers.
Special Provisions (Chapter VB): Applies to
industries with more than 100 workers, placing
stricter conditions on layoffs, retrenchments, and
closures
PENALTIES (CHAPTER VI)
Penalties for Illegal Strikes (Section
26): Imposes fines and imprisonment for
engaging in illegal strikes or lockouts.
Penalties for Breach of Settlements
(Section 29): Breach of settlements or
awards can lead to fines
UNFAIR LABOUR
PRACTICES (CHAPTER VC)
Prohibition (Section 25T): Unfair
practices like coercing employees,
restricting trade union rights, or
employer retaliation are prohibited.
Penalties (Section 25U): Penalties for
engaging in unfair practices
MISCELLANEOUS
(CHAPTER VII)
Conditions of Service (Section 33):
Protects employees from changes in
their conditions of service during the
pendency of dispute resolution
proceedings.
Recovery of Dues (Section 33C): Allows
workers to claim any money owed to
them from their employer