Name: Mahekfatema Mohamedali Asrani

Roll no. 103, Div: A

Course: FYBMS, sem 2
Subject: Industrial Law

THE INDUSTRIAL DISPUTES ACT 1947

DEFINATION:
An industrial dispute is defined as a conflict or a difference in
opinion between management and workers regarding employment.
It is a disagreement between an employer and employees’
representative i.e. trade union. The issue of disagreement is usually
pay or other working conditions.
According to Section 2(k) of the Industrial Disputes Act, 1947
“industrial dispute” is defined as, “Any disputes or differences
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
labor, of any person”.
a) There should be a factum of dispute not merely a difference of
opinion.
b) It has to be espoused by the union in writing at the
commencement of the dispute. Subsequent espousal will render the
reference invalid. Therefore, date when the dispute was espoused is
very important.
c) It affects the interests of not merely an individual workman but
several workmen as a class who are working in an industrial
establishment.
d) The dispute may be in relation to any workman or workmen or
any other person in whom they are interested as a body.

INTRODUCTION:
The Industrial Disputes Act, 1947 is the primary legislation
governing dispute resolution in India. It was enacted to provide for
the investigation and settlement of industrial disputes, to prevent
illegal strikes and lockouts, to provide relief to workmen during lay-
off or after retrenchment or wrongful dismissal. It also provides for
the mechanisms of conciliation, arbitration, and adjudication to
promote measures for mutually beneficial relations between
employers and employees.
This Act, extended to the whole of India and regulated Indian labor
law so far as that concerns trade unions as well as Individual
workman employed in any Industry within the territory of Indian
mainland. Enacted on 11 March 1947 and It came into force 1 April
1947. It was replaced by the Industrial Relations Code, 2020.
During an industrial dispute, both the parties try to pressurize each
other to agree to their terms and conditions. The industrial unrest
manifests itself as strikes, lock-outs, picketing, gheraos and
indiscipline on the part of workers.
An industrial dispute can never be said to be a good choice.
Consequences of industrial disputes are very far reaching, for they
disturb the economic, social and political life of a country. They are
no less than a war. In a war, casualties and sufferings are not
confined to soldiers fighting on the front, so stoppage of work due to
strike or any other mode resulting in stoppage of work does not
affect the employees or the employers of the struck plant, but it
affects the whole society or country.

OBJECTIVES:
The objective of the Industrial Disputes Act is to secure industrial
peace and harmony by providing machinery and procedure for the
investigation and settlement of industrial disputes by negotiations.
The laws apply only to the organized sector, introduced by an
amendment in 1976, requires firms employing 300 or more workers
to obtain government permission for layoffs, retrenchments and
closures. A further amendment in 1982 (which took effect in 1984)
expanded its ambit by reducing the threshold to 100 workers.
The Act also lays down:
1.The provision for payment of compensation to the workman on
account of closure or lay off or retrenchment.
2.The procedure for prior permission of appropriate Government for
laying off or retrenching the workers or closing down industrial
establishments
3.Unfair labor practices on part of an employer or a trade union or
workers.
4. To encourage good relations between labor and industries, and
provide a medium of settling disputes through adjudicator
authorities.
5. To provide a committee for dispute settlement between industry
and labor with the right of representation by a registered trade union
or by an association of employers.
6.. Prevent unauthorized strikes and lockouts.
7. Reach out to labor that has been laid-off, unrightfully dismissed,
etc.
8. Provide labor the right to collective bargaining and promote
conciliation.
New Indian Industrial Dispute Act Principles:
1. A permanent conciliation committee for the speedy settlement of
industrial disputes.
2. Compulsory arbitration in public utility services and enforcement
of arbitration awards.
3. Strikes during proceedings of conciliation and arbitration
meetings are prohibited.
4. Set aside specific times for conciliation and arbitration meetings.
5. Employers have to be obliged to communicate with labor unions.
6. Mutual consultation has to be set up between industry and labor
by the Works Committee.
7. Disputes between labor and industry have to be forwarded to an
Industrial Tribunal. If the Industrial tribunal fails to handle the case,
the case should be forwarded to the appropriate government.
APPLICABILITY:
The Industrial Disputes Act extends to whole of India and applies to
every industrial establishment carrying on any business, trade,
manufacture or distribution of goods and services irrespective of the
number of workmen employed therein. Every person employed in
an establishment for hire or reward including contract labor,
apprentices and part-time employees to do any manual, clerical,
 skilled, unskilled, technical, operational or supervisory work, is
covered by the Act. This Act though does not apply to persons
mainly in managerial or administrative capacity, persons engaged in
a supervisory capacity and drawing or executing managerial
functions and persons subject to Army Act, Air Force and Navy Act
or those in police service or officer or employee of a prison.

AUTHORITIES UNDER THE ACTS AND THEIR DUTIES:

The Industrial Dispute Act, 1947 makes provision for the
investigation and settlement of disputes that may hamper the peace
of the industry. It ensures harmony and cordial relationship between
the employers and employees. The Act provides self-contained code
to compel the party to resort to industrial arbitration for the
resolution of disputes. It also provides statutory norms besides
helping in the maintaining of cordial relation among the employers
and employees, reflecting socio-economic justice.
The act provides for the following authorities for Investigation and
Settlement of industrial disputes:
i. Works Committee
ii. Conciliation officer
iii. Boards of Conciliation
iv. Court of Inquiry
v. Labor Court
vi. Labor Tribunals
vii. National Tribunals
viii. Grievance Redressal Committee
Let us discuss these authorities in detail:
Works Committee (Section 3):
The works committee is a committee consisting of representatives of
employers and workmen (section3). The works committee is a
forum for explaining the difficulties of all the parties. The main
objective of the works committee is to solve the problems arising in
the day-to-day working of a concern and to secure industrial
harmony. The function of the working committee is to ascertain the
grievances of the employees and to arrive at some agreement.
The committee is formed by general or special order by the
appropriate Government in an industrial establishment in which 100
or more workmen are employed or have been employed on any day
in the preceding 12 months. It consists of the representatives of
employers and workmen engaged in the establishment.
Conciliation officer (Section 4):
For promoting and settlement of industrial disputes the appropriate
Government may by notification in the official Gazette, appoint
such number of conciliation officer as it thinks fit. The main
objective of appointing conciliation officer is to create congenial
atmosphere within the industry and reconcile the disputes of the
workers and the employers. He may be appointed for a specified
area or for specified industries in a specified area or for one or more
specified industries and either permanently or for a limited period.
The duty of the conciliation officer is not judicial but
administrative. He has to hold conciliation proceedings, investigate
the disputes and do all such things as he thinks fit for the purpose of
inducing the parties to arrive at a fair settlement of the disputes. The
conciliation officer is entitled to enter an establishment to which the
dispute relates, after reasonable notice and also to call for and
inspect any document which he considers relevant. He has to send a
report and memorandum of settlement to appropriate Government.
The report by the conciliation officer has to be submitted within 14
days of the commencement of the conciliation proceeding or shorter
period as may be prescribed by the appropriate Government. The
conciliation officer has the power to enter the premises as well can
call for and inspect documents.
Boards of Conciliation (Section 5):
The appropriate Government may by notification in the official
Gazette, constitute a Board of Conciliation for the settlement of
industrial disputes. The Board shall consist of a chairman and 2 or 4
other members in equal numbers representing the parties to the
disputes as the appropriate Government thinks fit. The Chairman
shall be an independent person.
A person is independent for the purpose of appointment to a Board,
Court or Tribunal if he is uncommitted with the dispute or with any
industry directly affected by such dispute. He may be a shareholder
of a company connected with or likely to be affected by such
disputes.
But in such a case he must disclose to the Government the nature
and intent of his share [Section 2(i)], Where the appropriate
Government is of the opinion that any industrial disputes exist in an
industry, it may refer by order in writing to the Board of
Conciliation for settling industrial disputes. The Board of
Conciliation has to bring about a settlement of the dispute. He has to
send a report and memorandum of settlement to appropriate
Government. He has to send a full report to the Appropriate
Government setting for the steps taken by the Board in case no
settlement is arrived at.
The Board of Conciliation has to communicate the reasons to the
parties if no further reference is made. The Board has to submit its
report within 2 months of the date on which the dispute was referred
to it within the period what the appropriate Government may think
fit. The report of the Board shall be in writing and shall be signed by
all the members of the Board.
Court of Inquiry (Section 6):
The appropriate Government may by notification in the official
Gazette, constitute a court of inquiry into any matter appearing to be
connected with or relevant to settlement of industrial disputes
having an independent person or of such independent persons as the
Government may think fit. The court consists of two or more
members one of whom shall be appointed by the Chairman. Within
a period of 6 months, the court has to send a report thereon to the
appropriate Government from the commencement of its any inquiry.
This period is not mandatory and it may extend. It has the same
powers as are vested in a Civil Court under the Code of Civil
Procedure 1908, in the following matters,
A) enforcing the attendance of any person and examining him on
oath,
B) compelling the production of documents and material objects,
C) issuing commissions for the examination of witnesses,
D) in respect of such other matters as may be prescribed.
The report of the Court must be signed by all the members. A
member can submit a note of dissent. The Report together with the
dissenting note must be published by the appropriate Government
within 30 days from its report. A court of enquiry has no power to
improve any settlement upon the parties.
Labor Court (Section 7):
The appropriate Government may by notification in the official
Gazette, constitute one or more labor court for adjudication of
industrial disputes relating to any matters specified in the Second
Schedule. A labor court consists of one person only to be appointed
by the appropriate Government. The main function of the labor
court is to hold its proceedings expeditiously and submit its award
as the proceeding concludes. A person shall be presiding officer of a
labor court unless,
A. he is or has been, a Judge of the High court,
B. he has for a period of not less than three years, been a District
Judge or an Additional District Judge,
C. he has held any judicial office in India for not less than seven
years; or
D. he has been the presiding officer of a Labor Court constituted
under any provincial Act or State Act for not less than five years.
E. He must be an independent person and must not have attained the
age of 65 years.
Labor Tribunals (Section 7- A):
The appropriate Government may by notification in the official
Gazette, constitute one or more Industrial Tribunals for adjudication
of industrial disputes. A Tribunal shall consist of one person to be
appointed by the appropriate Government. The Appropriate
Government may appoint two persons as assessors to advise the
Tribunal. The person shall be not qualified unless,
A. he is, a Judge of the High court,
B. he has for a period of not less than three years, been a District
Judge or an Additional District Judge.
C. The appropriate Government may, if it so thinks fit, may appoint
two persons as assessors to advise the Tribunal in the proceeding
before it.
The functions of the Tribunals are very much like those of a body
discharging judicial functions, although it is not a Court. Its power is
different from that of a Civil Court. The proceedings before an
Industrial Tribunal are quasi-judicial in nature with all the attributes
of a Court of Justice.
The Government is empowered under Section 7-A of the Act to
constitute for a limited time which comes to an end automatically on
the expiry of the said period for any particular case. The duties of
Industrial Tribunal are identical with the duties of Labor Court, i.e.
on reference of any industrial disputes; the Tribunal shall hold its
proceedings expeditiously and submit its award to the appropriate
Government.
National Tribunals (Section7 B):
The Central Government, by notification in the official Gazette,
constitute one or more National Industrial Tribunals for the
adjudication of industrial disputes. National Industrial Tribunals are
involved only in case of the questions of national importance or if
they are of such nature that industrial establishments situated in
more than one State are likely to be interested in, or affected by,
such industrial disputes. It consists of one person only to be
appointed by the Central Government. The person shall not be
qualified for appointment as the presiding officer unless he is, or has
been, a Judge of a High Court. Beside these, the Central
Government may, if it thinks fit, appoint two persons as assessors to
advise the National Tribunal in the proceedings before it.
Grievance Redressal Committee Section-9(c):
This Act requires the employer in every industrial establishment in
which fifty or more workmen are employed to provide for a
grievance settlement authority. Every industrial establishment
consisting of twenty or more workmen shall have one or more
grievance redressal committees that shall be composed in equal
proportion by members of management. The total number of
members in the committee shall not exceed six and shall include one
female member if feasible.
The Grievance Redressal Committee shall complete its proceedings
within forty five days after the receipt of a written complaint by an
aggrieved party. Any workman dissatisfied by the decision of the
committee may prefer to appeal against it. The employer is then
obliged to consider the appeal and dispose of the matter within one
month from the date of its institution and provide a copy of the
decision to the aggrieved employee.
Reference of Disputes
Any industrial disputes should have to referred by the Appropriate
Government under section 10 for adjudication, to the Conciliation
Board, Labor Court, Court of Inquiry or Industrial Tribunal or
National Tribunal.
A. Reference of disputes to various Authorities:
A matter is referred to the Conciliation Board for promoting the
settlement of the disputes. The Conciliation Board is to promote
settlement and not to adjudicate. But if the purpose of reference of
the matter is investigatory instead of conciliatory or adjudicatory, it
should be referred to Court of Inquiry. Again, if the matter is related
to the Second Schedule or Third Schedule, it is referred to the Labor
court.
 On the other hand, any matter of the industrial disputes which may
relate to the Second Schedule or Third Schedule may refer to the
Industrial Tribunal. Where the disputes relate to a public utility
service and a notice of the same is given, it becomes mandatory of
the Appropriate Government or the Central Government to refer the
matter for adjudication. But the power of the Appropriate
Government to make a reference is discretionary and it is open to
judicial review.
B. Reference of disputes to National Tribunal involving question
of importance, etc.:
When industrial disputes are of national importance or they are
likely to affect the industrial establishments situated in more than
one State then they are referred to the National Tribunal by the
Appropriate Government for adjudication. Again if any matter
referred to National Tribunal is pending in a proceeding before a
Labor Court or Tribunal, the proceeding before Labor Court or
Tribunal becomes invalid. On the other hand, it is not lawful to refer
any matters which are under adjudication before the National
Tribunal to Labor Court or Tribunal.
C. Reference on application of parities:
If a person individually jointly applies any matter in a prescribed
manner to the Conciliation Board, Labor Court, and Court of
Inquiry, Industrial Tribunal or National Tribunal for adjudication
and the Appropriate Government on being satisfied on the same
specifies, such time limit is then proper to submit the award.
D. Time limit for submission of awards:
Section 10 (2A) of the Act specifies the time period for submitting
award by the Appropriate Government, when any reference is made
to the Labor Court, Industrial Tribunal or National Tribunal for
adjudication.
Voluntary Reference of Disputes to Arbitration:
The settlement of industrial disputes may be done through voluntary
reference under section 10-A.
i) When an industrial dispute is not referred to Conciliation Board,
Labor Court, and Court of Inquiry, Industrial Tribunal or National
Tribunal for adjudication, the employer and the workmen through a
written agreement forward the matter for arbitration specifying the
names of the arbitrator.
ii) The arbitration agreement should be made in prescribed form and
should be signed by the parties.
iii) Within one month from the receipt of the arbitration agreement
which should be forwarded to Appropriate Government and the
Conciliation officer, a copy of the same has to be published in the
official Gazette.
iv) The arbitrator or arbitrators shall have to investigate the disputes
and submit to the Appropriate Government the award.
v) The award should be signed by the arbitrator or the arbitrators.
vi) The strike or lock-out in connection with the disputes should be
prohibited by an order of the Appropriate Government
Procedure and Powers of Authorities:
Section 11 provides that every Conciliation officer or member of a
Board or Court or Presiding officer of a Labor Court, Industrial
Tribunal or National Tribunal after giving notice can enter the
premises occupied by any establishment to which the disputes relate
and follow such procedure as the authority concerned may think fit.
They have the same power as vested in the Civil Court under the
Code of Civil Procedure, 1908.
The Conciliation officer may enforce the attendance of any person
for the purpose of examination of such person or call for and inspect
the documents. The Conciliation Board, Labor Court, and Court of
Inquiry, Industrial Tribunal or National Tribunal has the full power
to determine to what extent, by whom and subject to what
conditions costs are to be paid. Thus, it is seen that section 11 (1)
has given wide power to the Conciliation Board, Labor Court, and
Court of Inquiry, Industrial Tribunal or National Tribunal in the
settlement of industrial disputes.
Award and Settlement:
Award means an interim or a final determination of any industrial
disputes or of any question relating thereto by any Labor Court,
Tribunal or National Tribunal and includes an arbitration award
made under section 10A Section 2 (b). The report of the Board of
Conciliation or the Court of Inquiry shall be in writing and shall be
signed by all the members and the award of a Labor Court and
Industrial Tribunal shall be in writing and shall be signed by the
Presiding officer.
An award usually is enforceable on the expiry of 30 days from the
date of its publication except when the Appropriate Government
declares that the award shall not be enforceable from the date of its
publication. Again, it may not be enforceable on the expiry of 30
days from the date of its publication, if the Central Government gets
the opinion regarding the award given by the National Tribunal. In
such case, the Appropriate Government or the Central Government
may within 90 days from the date of publication of the award under
section 17 make an order rejecting or modifying the award. But, if it
appears that the award given by the Industrial Tribunal is fair , it is
authorized to issue direction that the award takes effect
retrospectively.
“Settlement” means a settlement arrived at in the course of
conciliation proceeding and includes a written agreement between
the employer and workmen arrived at than in the course of
conciliation proceeding where such agreement has been signed by
the parties in such a manner as may be prescribed and a copy sent to
an officer authorized in this behalf by the appropriate Government
and the conciliation officer.
A settlement therefore, is an agreement reached among the parties
to a workers' compensation claim. This includes you, your employer
and the workers' compensation insurer (unless your employer is
self-insured). This is a type of contract, and it may bar you from
seeking further compensation for your injury.
Persons on whom settlements and awards are binding
(Section 18):
1. Settlement and awards are binding on all the parties under the
agreement arrived at between the employers and workers in the
course of conciliation proceedings.
2. An arbitration award is binding on the concerned parties of the
agreement who referred the disputes to arbitration.
3. An arbitration award or settlement award or award of Labor
Court, and Industrial Tribunal or National Tribunal is binding on
a. All the parties to the disputes,
b. On all other parties who are summoned to appear in the
proceeding as parties to the disputes, unless the Board, Arbitrator,
Labor Court, Industrial Tribunal or National Tribunal in the
settlement of industrial disputes as the case may be, records the
opinion that they were summoned without proper cause.
c. Where a party referred to Clause (a) and Clause (b) is an
employer, his heirs, successors assigned in respect of the
establishment to which the dispute relates.
d. But if the parties referred to in Clause (a) or Clause (b) is of
workmen, all person who were employed in the establishment or
part of the establishment, as the case may be, to which the disputes
relates on the date of the dispute and all persons who subsequently
become employed in that establishment or part.
A settlement arrived at in the course of conciliation proceedings
before a Conciliation officer shall come into operation on such date
is agreed upon by the parties to the disputes and on the date on
which the memorandum of the settlement is signed by the parties to
the disputes when no date is agreed. But, if a person breaches any
term of any settlement or award which is binding on him he shall be
punishable with imprisonment for a term which may extend to 6
months or with fine or both.
Conclusion:
The Industrial Dispute Act, 1947 which extends to the whole of
India came into operation on the first day of April 1947. As per
Preamble of the said Act, it is enacted to make a provision for the
investigation and settlement of the dispute and certain other
purposes such as recovery of money from the employer in terms of
Settlement or Award by making an application to the appropriate
government. The purpose and aim of the Industrial Disputes Act
1947 is to minimize the conflict between labor and management and
to ensure, as far as possible, Economic and Social Justice. The act
has made comprehensive provisions both for this settlement of
disputes and prevention of disputes in certain Industries.
While the Act provides for both internal and external bodies for
dispute resolution and prevention of illegal strikes, lockouts and
mitigates the use of unfair labor practices, from a compliance
perspective it is important to have robust internal mechanisms that
address disputes. External mechanisms generally require a great deal
of effort, expense and time spent which generally leads to a soured
relationship between employer and employee. Thus, having internal
mechanisms is preferable because the likelihood of having to rely on
adjudication or alternate dispute resolution reduces thereby
providing for an amicable working relationship which ultimately
leads to greater productivity.